What is the Lease Documentation Late Fee that Auntie Annes may charge?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
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5.4 Site Acquisition.
A. Acceptance and Execution of Site Agreement. You must deliver a copy of the signed lease, sublease, or other rental agreement for the location (the "Lease") or purchase agreement for the location (the "Purchase Agreement" and, collectively with the Lease, the "Site Agreement") to us with a
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, if a franchisee fails to provide the signed lease, sublease, or rental agreement (referred to as the "Lease") or purchase agreement (referred to as the "Purchase Agreement," and collectively with the Lease, the "Site Agreement") within 15 days after its execution, Auntie Anne's may charge a Lease Documentation Late Fee.
The Lease Documentation Late Fee is $500 per month (or partial month) from the date the Site Agreement is due until it is delivered. This fee is designed to encourage franchisees to promptly submit the necessary documentation related to their location.
For a prospective Auntie Anne's franchisee, this means it's crucial to prioritize and expedite the submission of the Site Agreement to Auntie Anne's within the specified timeframe to avoid incurring this monthly fee. Failing to do so could result in unexpected costs that impact the franchisee's financial performance.