What is the initial franchise fee for an Auntie Annes Full Shop?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
h September 2026, including precautions and response measures for credentialstuffing attacks.
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 new franchisee to apply part of their Initial Franchise Fee to the cost of needed improvements or equipment. We may modify or cease offering any discount or incentive programs at any time.
During the 2023 calendar year, franchisees paid Initial Franchise Fees ranging from $0 to $35,500.
Source: Item 5 — INITIAL FEES (FDD pages 28–30)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, the initial franchise fee for a Full Shop is $35,500. This fee is payable when you sign the Franchise Agreement and is not refundable. However, the FDD also indicates that for qualifying veterans or members of the Armed Forces, the initial franchise fee for a Full Shop is reduced to $20,000.
Furthermore, Auntie Anne's reserves the right to reduce the initial franchise fee under certain circumstances. These circumstances include providing economic incentives for opening in specific locations, inducing existing operators to open additional shops, reopening closed shops, taking over operating shops, attracting professional multi-unit operators, or allowing franchisees to allocate more funds to shop improvements and marketing during the first year. The amount of any reduction is determined on a case-by-case basis, considering factors such as the condition of the premises and the need for upgrades.
It's important to note that during the 2023 calendar year, franchisees paid initial franchise fees ranging from $0 to $35,500, indicating that some franchisees may have received a reduction in the initial fee. The FDD also mentions that in certain rare cases, Auntie Anne's may permit installment payments of the initial franchise fee, with terms negotiated individually with the franchisee. This provides some flexibility, although it is not guaranteed.
Prospective franchisees should inquire about eligibility for the VetFran program or any other potential discounts based on their specific circumstances. Understanding the conditions under which the initial fee may be reduced or structured differently is crucial for financial planning. Additionally, franchisees should be prepared to pay the full initial franchise fee of $35,500 unless they qualify for a specific reduction or alternative payment arrangement.