When is the initial franchise fee due to be paid to Auntie Annes?
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 |
| Rent |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 44–54)
What This Means (2024 FDD)
According to Auntie Annes'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 shop a franchisee opens.
For a standard Auntie Annes shop, the initial franchise fee ranges from $35,500 to $66,000. For a Concession Shop, the initial franchise fee is $10,500. For Co-Branded Shops, the initial franchise fee is $71,000.
This means that a prospective Auntie Annes franchisee must have the full initial franchise fee amount available at the time they sign the franchise agreement. This is a non-refundable fee, so it is important for the franchisee to be certain about their decision before signing the agreement. Franchisees should also factor this immediate cost into their initial investment calculations.