For an Auntie Annes franchise, what items in Item 6 relate to pre-opening purchases/leases?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| b. Pre-Opening | 5, 6, 7, 10, and | 20.G. and | 5, 7, 8, 11, | |
|---|---|---|---|---|
| 20.G. | 9, 11, and | |||
| purchases/ leases | 12.8 | 20.L. | 12 | and 12 |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 59–61)
What This Means (2024 FDD)
According to the 2024 Auntie Annes Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, and it references Item 6 in relation to pre-opening purchases and leases. Specifically, the table provided indicates that sections 5, 6, 7, 10, and 12.8 of Item 6 are relevant to pre-opening purchases or leases.
This means that prospective Auntie Annes franchisees should carefully review these specific sections within Item 6 of the FDD to understand the fees and costs associated with purchasing or leasing necessary items before opening their franchise. These could include equipment, initial inventory, leasehold improvements, or other required pre-opening expenditures. Understanding these costs is crucial for budgeting and financial planning.
It is important for potential Auntie Annes franchisees to consult Item 6 and related sections to fully understand the financial commitments necessary to start the franchise. Item 9 serves as a roadmap, directing franchisees to the specific areas of the FDD that detail their obligations, particularly those concerning pre-opening investments.