What is the initial franchise fee for an Auntie Annes Concession Shop?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
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Other than these actions, no litigation is required to be disclosed in this Item.
ITEM 4. BANKRUPTCY
No bankruptcy is required to be disclosed in this Item.
ITEM 5. INITIAL FEES
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.
We participate in the International Franchise Association's VetFran program. For qualifying veterans or members of the Armed Forces, the Initial Franchise Fee for a Full Shop is $20,000.
We reserve the right to reduce the Initial Franchise Fee under certain circumstances, including: (i) as an economic incentive for a franchisee to open a certain location, with the determination made on a case-by-case review of all relevant economic factors; (ii) as an inducement for existing operators to open additional Shops; (iii) as an inducement for someone to reopen a closed Shop; (iv) as an inducement for someone to take over an operating Shop; (v) as an inducement for a professional multi-unit operator to open several Shops; or (vi) to allow a franchisee to have additional money to spend on shop improvements and marketing during the first 12 months of operation. The amount of any reduction will be made on an individual basis and may depend on the condition of the premises, the need for upgrades and remodeling, any special circumstances that we may consider appropriate, and/or other considerations. In addition, we may allow a ne
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 Concession Shop is $10,500. This fee is payable when you sign the Franchise Agreement and is not refundable. It grants you the right to operate an Auntie Annes Concession Shop under the terms and conditions outlined in the agreement.
In addition to the initial franchise fee, prospective franchisees should also be aware of other fees that may be required before opening their Auntie Annes Concession Shop. These include a POS System Administration Fee, estimated to be between $1,500 and $2,000, and a Grand Opening Advertising obligation, which for a Concession Shop will be between $1,000 and $5,000. These additional costs should be factored into the overall investment required to start an Auntie Annes franchise.
Auntie Annes also offers a reduced initial franchise fee of $20,000 for qualifying veterans or members of the Armed Forces for a Full Shop. While this discount does not apply to Concession Shops, it demonstrates that Auntie Annes may offer economic incentives under certain circumstances, such as for existing operators opening additional shops or to incentivize the reopening of a closed shop. It is important to inquire with the franchisor about any potential discounts or incentives that may be available.
It is important to note that during the 2023 calendar year, franchisees paid Initial Franchise Fees ranging from $0 to $35,500. This indicates that the actual initial franchise fee can vary, potentially due to the incentives Auntie Annes offers. A prospective franchisee should discuss the specific factors that could influence their initial franchise fee with Auntie Annes.