For an Auntie Annes franchise, when is the initial franchise fee of $10,500 due?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
opening | Our designated suppliers | | | Additional Funds - 3 | $15,000 | $28,000 | As incurred | As incurred | Us, employees, | | | Months21 | | | | | vendors, etc. | | | Total Initial | $154,285 | $330,460 | | | | | | Investment22 | | | | | | |## YOUR ESTIMATED INITIAL INVESTMENT: CONCESSION SHOP - TRAILER
| Type of | Amount of I | Expenditure | Method of | When Payments | To Whom | |------------------------------------
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 44–54)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the initial franchise fee of $10,500 is due at the signing of the Franchise Agreement. This fee is a lump sum payment made directly to Auntie Annes.
For prospective franchisees, this means that upon deciding to move forward with an Auntie Annes franchise and signing the agreement, the $10,500 fee must be paid. This is a standard practice in franchising, as the initial fee grants the franchisee the right to use the Auntie Annes brand, system, and trademarks.
It's important to note that this fee is generally non-refundable, as stated in explanatory note. Therefore, potential franchisees should conduct thorough due diligence and seek professional advice before signing the Franchise Agreement and paying the initial fee to Auntie Annes.