When is the initial franchise fee due for an Auntie Annes franchise?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
$3,300 | $4,000 | As incurred | Before opening | Vendors | | Additional Funds - 3 Months21 | $15,000 | $28,000 | As incurred | As incurred | Us, employees, vendors, etc. | | Total Initial | $107,540 | $249,400 | | | | | Investment22 | | | | | |## YOUR ESTIMATED INITIAL INVESTMENT: CINNABON CO-BRANDED SHOP 24
| Type of Expenditure | Amount of Expenditure | | Method of | When Payments Are | To Whom Payment Will | |---------------------------------------------------------------|-----------------------|-----------|-------------|-----------------------------------------|----------------------| | | Low | High | Payment | Due | Be Made | | Initial Franchise Fee 1 | $66,000 | $66,000 | Lump sum | At signing of Franchise Agreement | Us | | Construction and | $195,000 | $400,000 | As incurred | As arranged | Contractors | | Build Out Costs 2 | | | | | | | Permitting 3 | $3,000 | $6,400 | As incurred | Before opening | Government agencies | | Equipment Package 4 | $74,000 | $140,000 | Lump sum | Before opening | Vendors | | Millwork 5 | $20,000 | $70,000 | As incurred | Before opening | Contractors | | Furniture 6 | $0 | $2,600 | As incurred | Before opening | Vendors | | Menu Board, | $4,000 | $14,700 | As incurred | Before opening | Vendors | | Graphics, and Interior | | | | | | | Signage 7 | | | | | | | Exterior Signage 8 | $4,100 | $20,000 | Lump sum | Before opening | Vendors | | Computer System 9 | $7,400 | $27,400 | As incurred | Before opening | Vendors | | Smallwares 10 | $3,000 | $12,000 | As incurred | Before opening | Vendors |
| Type of Expenditure | Amount of E | Expenditure | Method of | When Payments Are | To Whom Payment Will |
|---|---|---|---|---|---|
| ,, , | Low | High | Payment | Due | Be Made |
| Architect/Engineer 11 | $8,500 | $27,000 | As incurred | Before opening | Architect |
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Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 44–54)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, the initial franchise fee is due at the signing of the Franchise Agreement. The amount of this fee varies depending on the type of Auntie Anne's shop a franchisee opens. For a standard Auntie Anne's shop, the initial franchise fee ranges from $35,500 to $66,000. For a Concession shop, the initial franchise fee is $10,500. For a Co-Branded shop, the initial franchise fee is $71,000.
This means that a prospective Auntie Anne's franchisee must be prepared to pay the full initial franchise fee as a lump sum when they formally agree to the franchise terms. This upfront payment grants the franchisee the right to operate an Auntie Anne's franchise under the company's established brand, system, and trademarks. It's important to note that this fee is generally non-refundable, so careful consideration and due diligence are essential before signing the Franchise Agreement.
Understanding when the initial franchise fee is due is a critical part of financial planning for new franchisees. This requirement is standard practice in the franchise industry, as it secures the franchisee's commitment and provides Auntie Anne's with capital to support the onboarding process, training, and ongoing support services. Therefore, potential franchisees should ensure they have the required funds readily available at the time of signing to avoid any delays in starting their Auntie Anne's business.