From whom must an Auntie Annes franchisee purchase or lease the POS System?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
roviders that facilitate this access. You must provide any assistance we require to integrate your POS System with our headquarters system at the earliest possible time and in the manner we prescribe. You must accurately, consistently, and completely record, structure, capture and provide all required information through your POS System in accordance with all applicable laws and protect such information as required.
To maintain a consistent reporting system, you must purchase or lease and use a POS System specified by us from a designated Approved Supplier. We estimate that the initial cost to you for the POS System and related necessary equipment, including installation and activation, currently ranges from $4,700 to $11,000 under the CapEx Program, depending on the number of terminals, travel costs, and other logistical factors. Under the CapEx Program, you must pay a monthly software license fee for the POS System that is currently $160 to $255 per mont
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 61–77)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees must acquire their Point of Sale (POS) system from a designated Approved Supplier specified by Auntie Annes. This requirement is in place to maintain a consistent reporting system across all franchise locations.
The initial cost for the POS system and related equipment, including installation and activation, ranges from $4,700 to $11,000 under the CapEx Program, depending on factors like the number of terminals and travel costs. Franchisees also have the option to lease the POS system under the HaaS Program. Additionally, franchisees must pay ongoing monthly fees for software licenses, which currently range from $160 to $255 per month under the CapEx Program, or a combined software license and hardware lease fee ranging from $285 to $473 per month under the HaaS Program, plus a one-time $300 activation fee. Auntie Annes collects these monthly fees and remits them to the vendor on the franchisee's behalf.
Auntie Annes may also provide project management assistance for the POS system's onboarding and configuration, for which the franchisee must pay a fee currently estimated between $1,500 and $2,000. Franchisees are further required to maintain the POS system in good repair and ensure it can communicate with Auntie Annes's central system. They must also obtain required support and maintenance service from Auntie Annes or its affiliate by signing the POS System Support Services Agreement. The total annual cost to license, operate, and support the POS system is estimated to be $3,724 to $6,063 under the CapEx Program and $5,232 to $8,680 under the HaaS Program, which includes various fees but excludes per-transaction fees. These costs are subject to change.
If Auntie Annes decides to change, upgrade, or discontinue the current POS system, franchisees are contractually obligated to comply with these changes at their own expense. This includes purchasing a new POS system, signing necessary agreements with the vendor, and paying any related support fees. Auntie Annes retains the right to modify the specifications of the Computer System, including the POS System, and franchisees must make periodic upgrades and updates to remain compliant with Auntie Annes's standards. This ensures that all Auntie Annes locations operate with a standardized and up-to-date system, but it also means franchisees must be prepared for potential future costs associated with these mandatory updates and changes.