What is included in the Computer System that Auntie Annes franchisees must purchase or lease?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
e have approved.
Pricing
We may, if permitted by applicable law, establish maximum, minimum, or other pricing requirements with respect to the prices you may charge for Approved Products, including required participation in systemwide discount programs and promotions. If we do not establish such pricing requirements, then you will have the right to determine the prices you charge.
Computer and POS Systems
You must provide financial and business records and information to us according to reporting formats, methodologies and time schedules that we establish. As part of these record keeping requirements, you must install computerized Shop management systems meeting our Standards, as modified in response to business, operations and marketing conditions. Accordingly, you must promptly purchase, lease and/or license and install at the Shop, at your sole expense, the POS System, computer systems, mobile hardware, software, associated computer hardware, telephone lines, network connections, communications equipment, high speed internet access (e.g. DSL or cable), credit card, gift card and loyalty card processing equipment, and other equipment that we require from time to time (collectively, the "Computer System"), all of which you must keep in good maintenance and repair. We estimate the total cost of the Computer System, including installation and setup fees, will be between $7,400 and $27,400 for a Full Shop and $7,400 and $16,400 for a Concession Shop, depending on the size of your Shop. For a Co-Branded Shop, the Computer System that we require meets both our and the Co-Branded Franchisor's standards. You may incur
additional expenses if you require additional equipment, training, or installation services. We may require you to purchase, license, or lease additional hardware or software.
The Computer System includes a POS System that we specify, the principal functions of which are to manage permanent financial records of sales transactions at your Shop, cash control, inventory control, and menu and price change control, among other things. We will have independent electronic and manual access to certain information within the POS System and there are no contractual limitations on our right to access this information. We have developed interfaces with our preferred providers 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 month depending on your equipment configuration. If you choose to lease the POS System under the HaaS Program, you must pay a monthly software license and hardware lease fee for the POS System that is currently $285 to $473 per month depending on your equipment configuration and a one-time $300 activation fee. We will collect the monthly fees, which may change from time to time, and pay them to the vendor on your behalf.
Whether you are opening a new Shop or purchasing an existing Shop, we may, in our sole discretion, provide you with project management assistance related to, and coordinate the onboarding and configuration of, your POS System. You must pay us for such services our thencurrent POS System Administration Fee, which is currently estimated to be between $1,500 and $2,000. We or the POS System vendor may require you to purchase, license, or lease additional hardware or software. In addition, you may incur additional expenses if you require or would like additional equipment, training, or installation services.
In addition, there may be ongoing license, maintenance, and service fees associated with the maintenance and operation of the POS System. You must maintain your POS System and keep it in good repair and procure any services necessary for the POS System to communicate with our system. In addition to the monthly license fees described above, we currently require you to obtain the required support and maintenance service from us or our affiliate by signing the POS System Support Services Agreement attached in Exhibit C to this Disclosure Document.
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 install computerized shop management systems that meet Auntie Annes's standards. The Computer System includes a POS System, computer systems, mobile hardware, software, associated computer hardware, telephone lines, network connections, communications equipment, high speed internet access, and credit card, gift card, and loyalty card processing equipment. Franchisees must keep the Computer System in good maintenance and repair.
The initial cost of the Computer System is estimated to be between $7,400 and $27,400 for a Full Shop and between $7,400 and $16,400 for a Concession Shop. These costs include installation and setup fees. The franchisee may incur additional expenses for extra equipment, training, or installation services. Auntie Annes may also require franchisees to purchase, license, or lease additional hardware or software.
The POS System manages financial records of sales transactions, cash control, inventory control, and menu and price changes. Auntie Annes will have independent electronic and manual access to information within the POS System. Franchisees must assist in integrating their POS System with Auntie Annes's headquarters system. Franchisees must also purchase a dedicated iPad or Windows tablet/computer for the Learning Management System, with a potential annual license fee of $210. A high-speed broadband connection dedicated solely to the Computer System is also required. Auntie Annes may require franchisees to use approved Internet service providers and maintain a minimum bandwidth.
Auntie Annes may revise the Computer System specifications and require periodic upgrades and updates. Franchisees are obligated to comply with these changes at their own expense. They may also be required to use approved suppliers for credit card data and security services, including a managed firewall, network scan, anti-virus software, and managed Wi-Fi, and to obtain data breach protection insurance. The estimated total annual cost to license, operate, and support the POS System ranges from $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 certain per-transaction fees.