What initial franchise fee is paid to Auntie Annes for a Co-Branded Shop?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
the following notes.
You should review this information, including the footnotes, carefully, conduct your own investigation and seek the help of qualified advisors before making any decision about an initial investment in a Shop.
None of these fees or payments are refundable unless otherwise noted below.
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- Initial Franchise Fee. See Item 5. For Co-Branded Shops, the Initial Franchise Fee estimate includes bot
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 for a Co-Branded Shop is more complex than a standard Auntie Annes franchise. The initial franchise fee estimate includes $35,500 paid to Auntie Annes. In addition to this, the franchisee must also pay an initial franchise fee to either Cinnabon ($30,500) or Jamba ($35,500), depending on which brand they are co-branding with. Therefore, the total initial franchise fee for a Co-Branded Shop will be either $66,000 (Auntie Annes and Cinnabon) or $71,000 (Auntie Annes and Jamba).
This fee is a one-time, lump-sum payment due upon signing the Franchise Agreement. It grants the franchisee the right to operate an Auntie Annes franchise co-branded with either Cinnabon or Jamba. It's important to note that this fee is generally non-refundable, so prospective franchisees should carefully consider their decision before signing the agreement.
The initial franchise fee is only one component of the total initial investment required to open an Auntie Annes Co-Branded Shop. Other costs include construction, equipment, inventory, and working capital. These additional costs can vary significantly depending on the location and size of the shop. Franchisees should carefully review all estimated costs and conduct their own due diligence before making a final decision.
Prospective franchisees should also be aware that the standards of both Auntie Annes and the co-branded franchisor (Cinnabon or Jamba) must be met, which may impact construction and build-out costs. It is advisable to consult with qualified advisors and carefully investigate all aspects of the investment before committing to a Co-Branded Shop.