What is the initial franchise fee for an Auntie Annes Cinnabon Co-Branded Shop?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
Initial Franchise Fees. When you sign a Franchise Agreement, you must pay us an initial franchise fee (the "Initial Franchise Fee") of $35,500 for a Full Shop, $10,500 for a Concession Shop, $66,000 for a Cinnabon Co-Branded Shop ($30,500 of which will be paid to Cinnabon), and $71,000 for a Jamba Co-Branded Shop ($35,500 of which will be paid to Jamba). We will not refund any part of the Initial Franchise Fee.
During the 2023 calendar year, franchisees paid Initial Franchise Fees ranging from $0 to $35,500.
If you sign multiple Franchise Agreements at the same time with a Multi-Unit Addendum to develop a set number of Shops, you must pay us all of the Initial Franchise Fees for all of the Shops that you commit to develop at the time you sign the Franchise Agreements with a Multi-Unit Addendum. If you fail to develop any of the Shops by the deadlines set forth therein or any Franchise Agreement(s) subject to the Multi-Unit Addendum are terminated, you will not receive a refund of any Initial Franchise Fees that you have prepaid.
Grand Opening Advertising. You must spend on grand opening advertising during the period beginning 90 days before you open the Shop and 90 days after you open the Shop a minimum of $2,500 if your Shop is located in an Other Location ($5,000 for a Co-Branded Shop in an Other Location, which covers both brands) and $7,500 if your Shop is located in a Streetside Location ($15,000 for a Co-Branded Shop in a Streetside Location, which covers both brands) (the "Grand Opening Obligation").
For the third and subsequent Shops that you or your affiliates operate, if we require you or you elect to receive the Management Training Program from us or our designee, you must pay us our then-current Management Training Program fee for all of your Required Trainees to attend in a single training session (currently, $2,500, except $4,000 for Co-Branded Shops).
Source: Item 5 — INITIAL FEES (FDD pages 28–30)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the initial franchise fee for a Cinnabon Co-Branded Shop is $66,000. Of this amount, $30,500 is paid to Cinnabon. This fee is non-refundable. The FDD also notes that during the 2023 calendar year, franchisees paid Initial Franchise Fees ranging from $0 to $35,500, suggesting that discounts or other incentives may have been applied in some cases.
In addition to the initial franchise fee, Auntie Annes franchisees operating a Co-Branded Shop will also incur other initial fees, such as those related to the POS system, grand opening advertising, and training. For instance, the grand opening advertising obligation for a Co-Branded Shop in an Other Location is $5,000, while it is $15,000 for a Streetside Location. For the third and subsequent Shops that you or your affiliates operate, if Auntie Annes requires you or you elect to receive the Management Training Program from them or their designee, you must pay their then-current Management Training Program fee for all of your Required Trainees to attend in a single training session (currently, $4,000 for Co-Branded Shops).
It is important to note that Auntie Annes reserves the right to reduce the Initial Franchise Fee under certain circumstances, such as economic incentives for specific locations, inducements for existing operators, or to allow more funds for shop improvements and marketing. Any reduction is determined on a case-by-case basis. Prospective franchisees should inquire about potential discounts and incentives during their discussions with Auntie Annes. Also, the FDD states that if you sign multiple Franchise Agreements at the same time with a Multi-Unit Addendum to develop a set number of Shops, you must pay all of the Initial Franchise Fees for all of the Shops that you commit to develop at the time you sign the Franchise Agreements with a Multi-Unit Addendum. If you fail to develop any of the Shops by the deadlines set forth therein or any Franchise Agreement(s) subject to the Multi-Unit Addendum are terminated, you will not receive a refund of any Initial Franchise Fees that you have prepaid.