What are the initial fees associated with the SRU program for Auntie Annes franchisees?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| SRU Initial Setup and Rental Fees | (i) $500 set-up fee; (ii) $1,000 security deposit; (iii) shipping expenses (est. to be $1,500 to $5,000); (iv) ongoing monthly rental fee equal to a flat dollar amount or a percentage of Net Sales (currently, 8%), up to a maximum dollar amount (currently, $1,600 to $2,750) | As incurred | If we grant you the right to participate in the SRU Program and you lease the SRU from us, you will incur these initial setup and ongoing fees. The maximum SRU monthly rental fee will vary based on the type of SRU. The rental fee and maximum rental fee may be increased upon 30 days' written notice. |
| SRU Training Fees | $750 | As incurred | If you participate in the SRU Program, we may, in our sole discretion, provide one day of installation and up to two days of on-site training, whether you purchase or lease the SRU from us or another approved vendor. |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees who participate in the SRU (Satellite Retail Unit) program will incur several initial fees. These fees cover the setup, security deposit, shipping, and training associated with the SRU. These fees are payable as incurred.
The initial SRU fees include a $500 set-up fee, a $1,000 security deposit, and shipping expenses estimated to be between $1,500 and $5,000. Additionally, there is a $750 training fee associated with the SRU program. These initial costs can total between $3,750 and $7,250, not accounting for the ongoing monthly rental fees.
Beyond the initial fees, franchisees will also be responsible for ongoing monthly rental fees for the SRU. These rental fees are either a flat dollar amount or a percentage of Net Sales, currently set at 8%, up to a maximum dollar amount ranging from $1,600 to $2,750. The maximum SRU monthly rental fee will vary based on the type of SRU. Auntie Annes may increase the rental fee and maximum rental fee with 30 days' written notice. Franchisees should consider these ongoing costs in addition to the initial setup fees when evaluating the SRU program.