What is the initial franchise fee for an Auntie Annes Jamba 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.
POS System Administration Fee. Before your Shop opens, we may, in our sole discretion, provide you with project management assistance related to, and coordinate the onboarding and configuration of, your POS System. You must pay us our then-current fee for such services, which is currently estimated to be between $1,500 and $2,000.
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").
On-Site Training and Assistance Fee. For your first two Full Shops (including Full Shops owned by your affiliates), the Initial Franchise Fee includes the cost of us providing one or more representatives to provide on-site opening training and assistance at your Shop. For your (or your affiliates') subsequent Shops, if we, in our sole discretion, provide on-site training or assistance (at your request or because we determine such assistance is necessary), you must pay us our thencurrent On-Site Training and Assistance Fee (currently, $500 per trainer per day, plus their travel and living expenses). Our on-site training and assistance for your third and subsequent Shops typically includes (i) one representative assisting for six days for most Shops, which would cost approximately $4,800 to $5,300, (ii) two representatives assisting for seven days for Cinnabon Co-Branded Shops, which would cost $11,100 to $12,200, and (iii) two representatives assisting for 10 days for Jamba Co-Branded Shops, which would cost $15,600 to $17,000.
Training Fee. We will provide our Management Training Program to two Managers and any other individuals that we designate (the "Required Trainees") at no additional charge for the first two Shops that you or your affiliates operate. 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 Jamba Co-Branded Shop is $71,000. Of this amount, $35,500 is paid to Jamba. This fee is non-refundable.
In addition to the initial franchise fee, Auntie Annes franchisees operating a Jamba Co-Branded shop should also be aware of other initial fees. These include a POS System Administration Fee, estimated to be between $1,500 and $2,000, and a grand opening advertising obligation. For a Co-Branded Shop in an Other Location, the grand opening advertising minimum is $5,000, while for a Streetside Location, it is $15,000. These amounts cover both brands.
For the third and subsequent Jamba Co-Branded Shops, if Auntie Annes provides on-site training or assistance, the franchisee must pay the then-current On-Site Training and Assistance Fee. Currently, this is $500 per trainer per day, plus travel and living expenses. On-site training for Jamba Co-Branded Shops typically involves two representatives assisting for 10 days, costing approximately $15,600 to $17,000.
Furthermore, for the third and subsequent shops, franchisees must pay a Management Training Program fee of $4,000 for Co-Branded Shops. It is important to note that these fees are subject to change, and franchisees should confirm the current fees with Auntie Annes before signing any agreements.