When is the interest payment due to Auntie Annes for past due amounts?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 6: OTHER FEES]
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| Reinstatement Fee | 10% of the amount of the then-current Initial Franchise Fee, plus Royalty Fees that would have been payable in period between termination and reinstatement | Before reinstatement | If we terminate your Franchise Agreement due to a health and safety default, you cure the default and want to be reinstated, and we agree to reinstate your Franchise Agreement, you must pay us a reinstatement fee. |
| De-identification Fee | Our actual costs, plus interest and an administrative fee equal to 15% of our actual costs | On invoice | Payable if we terminate the Franchise Agreement, you fail to de-identify the Shop, and we make the required changes on your behalf. |
[Item 6: OTHER FEES]
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| Insurance | Amount of unpaid premiums and our costs | On demand | Payable only if you fail to maintain required insurance coverage and we elect to obtain coverage for you. See Item 8. |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the timing of interest payments on past due amounts depends on the specific fee that is unpaid. For instance, if Auntie Annes terminates the Franchise Agreement and the franchisee fails to de-identify the shop, Auntie Annes will make the required changes and charge the franchisee their actual costs, plus interest and an administrative fee equal to 15% of their actual costs. This de-identification fee, including interest, is due on invoice.
Another instance where interest may be charged is if a franchisee fails to maintain the required insurance coverage, and Auntie Annes elects to obtain coverage for them. In this case, the franchisee is responsible for the amount of unpaid premiums and Auntie Anne's costs, which is due on demand.
Prospective Auntie Annes franchisees should note that the 'date due' for various fees, including those that may accrue interest, varies depending on the nature of the fee. It is important to carefully review the descriptions of all fees in Item 6 of the FDD to understand when payments are due and what circumstances might lead to interest charges.