To whom might Auntie Annes franchisees be required to remit the Back Office and Polling Software Fee?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 6: OTHER FEES]
Notes
Unless otherwise stated, we directly impose all the fees in this table, you pay them to us, and we do not refund them.
We endeavor to impose these fees uniformly but reserve the right to make variances in special circumstances, like co-branding opportunities or franchisees operating in non-traditional locations.
We reserve the right to collect all fees due to us under the Franchise Agreement through EFT.
We may change the Payment Due Date, and any other due dates, in the Manuals or in a written notice to you.
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- For Co-Branded Shops, we and the Co-Branded Franchisor may both independently impose the following fees (in other words, (a) we could charge the fee and the Co-Branded Franchisor could also separately charge the same fee or (b) we could charge the fee, even if the Co-Branded Franchisor does not do so): (i) the Renewal Fee; (ii) the Ordering Support Fee; (iii) fees related to Advertising Cooperatives, brand promotions, taxes and related payments, conferences and programs, brand advisory councils, transfers, gift card and loyalty programs, loyalty apps, online ordering, purchasing programs, supply chains, insurance policies, development deadline extensions, indemnification provisions, attorneys' fees, and the reinstatement of franchises; and (iv) any other fees that are brand-specific or relate to costs that may be separately incurred by us and/or the Co-Branded Franchisor. All other fees will be charged by (x) us or the Co-Branded Franchisor, but not both or (y) jointly by both us and the Co-Branded Franchisor (and split between the two of us).
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
Based on the 2024 Auntie Annes Franchise Disclosure Document, the document states that unless otherwise stated, Auntie Annes directly imposes all the fees in the table, and franchisees pay them to Auntie Annes, and they do not refund them. Auntie Annes endeavors to impose these fees uniformly but reserves the right to make variances in special circumstances, like co-branding opportunities or franchisees operating in non-traditional locations. Auntie Annes reserves the right to collect all fees due to them under the Franchise Agreement through EFT and may change the Payment Due Date, and any other due dates, in the Manuals or in a written notice to you.
While the FDD excerpt specifies that franchisees generally pay fees directly to Auntie Annes, it also mentions potential variances in special circumstances such as co-branding opportunities. For Co-Branded Shops, Auntie Annes and the Co-Branded Franchisor may both independently impose certain fees. However, the Back Office and Polling Software Fee is not listed among the fees that can be independently imposed by both Auntie Annes and the Co-Branded Franchisor. All other fees will be charged by (x) Auntie Annes or the Co-Branded Franchisor, but not both or (y) jointly by both Auntie Annes and the Co-Branded Franchisor (and split between the two of them).
Therefore, for a standard Auntie Annes franchise, the Back Office and Polling Software Fee would likely be remitted directly to Auntie Annes. However, in a co-branded situation, it could potentially be collected by either Auntie Annes or the co-branded franchisor, but not both, or jointly by both and split between the two. A prospective franchisee should clarify with Auntie Annes the specific payment arrangements for this fee, especially if considering a co-branded location, to fully understand their financial obligations.