What fees are Auntie Annes franchisees required to pay for Support Services?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
ting condition and meet the Minimum Specifications (including, without limitation, the standard hardware and software requirements set forth therein). The Support Services do not include support for hardware and software that is not part of the Minimum Specifications. Company will provide Support Services in connection with specific versions of the software identified in the Minimum Specifications, and will not provide Support Services in connection with software that is no longer supported by the software licensor. Franchisee is responsible for implementing temporary procedures or workarounds as necessary to ensure continuous operation of the Franchised Business while Company is providing Support Services. Franchisee is responsible for backing up its files, data and programs and for reconstructing corrupted, lost or altered Franchisee files, data and programs. Company reserves the right, at any time and from time to time during the Term, to make the final judgment, in its sole discretion, as to whether the POS System and Franchisee adequately meet the Minimum Specifications and other prerequisites for Support Services required under this Agreement.
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- Service Fees. Franchisee shall pay Company the Comprehensive Support Fee and/or Billable Support Fee (collectively, the "Service Fees"), as applicable, for the Support Services provided by Company. Service Fees are exclusive of, and Franchisee will pay, any applicable sales, use, service, value added or like taxes. In the event of a Franchisee Default (as defined below), Company reserves the right, but not the obligation, to suspend part or all of the Support Services until such Franchisee Default is cured; provided however, that Franchisee shall continue to pay Service Fees, during the Term of the Agreement notwithstanding any suspension of Support Services due to a Franchisee Default.
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- Amendments to Schedule A.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes' 2024 Franchise Disclosure Document, franchisees are required to pay service fees for support services. These fees include both a Comprehensive Support Fee and a Billable Support Fee, which are collectively referred to as "Service Fees." The Comprehensive Support Fee covers the Comprehensive Support services, as described in Schedule A of the agreement. Franchisees may also request Billable Support, which is subject to a Billable Support Fee, also detailed in Schedule A. These fees are in addition to any applicable sales, use, service, or value-added taxes.
Auntie Annes requires that payments of Comprehensive Support Fees be drafted monthly from the franchisee's designated bank account via electronic funds transfer (EFT). These payments will be drafted on the same day that royalties and other fees are due under the Franchise Agreement, commencing on the payment date of the first full month following the store's opening date. Auntie Annes emphasizes that timely payment is essential.
It's important to note that Auntie Annes reserves the right to modify the Support Services and Service Fees by amending Schedule A. The franchisee will be notified of any changes at least 90 days before they take effect, either via email or updates to the manuals. Additionally, if a franchisee defaults on their agreement, Auntie Annes has the right to suspend support services, though the franchisee remains obligated to pay the Service Fees during the suspension. Franchisees are also responsible for all telecommunication charges associated with obtaining support services.