To whom is the Loyalty App Fee for Auntie Annes payable?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
tor retains 7.75% or 12% of the value of a gift card purchased from a retailer other than a Shop (with the percentage varying by retailer). If a gift card is redeemed in your Shop, we will reimburse the redeemed amount minus the 7.75% or 12% administrative fee retained by the |
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| vendor. In addition, currently, you must pay our designated gift card processor $4.50 per Shop per mo |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees are required to participate in the loyalty program and must pay a Loyalty App Fee. This fee is currently $51 per month and is payable as incurred. The Loyalty App Fee is paid either to Auntie Annes or to a vendor that Auntie Annes designates for the use of their designated loyalty app. The FDD also states that the Loyalty App Fee is subject to change.
This means that as an Auntie Annes franchisee, you will need to budget $51 per month for the Loyalty App Fee. It is important to note that this fee could increase or change over time, so franchisees should be prepared for potential adjustments. Franchisees should also confirm who the payment should be made to, whether it is directly to Auntie Annes or to a specific vendor they designate.
Franchisors commonly implement loyalty programs to encourage repeat business and gather customer data. The fees associated with these programs can vary, with some franchisors including the cost in the overall royalty fee, while others charge a separate fee as Auntie Annes does. It is important for prospective franchisees to understand the costs associated with these programs and how they might impact their profitability.
As a prospective franchisee, it would be prudent to inquire with Auntie Annes about any planned changes to the Loyalty App Fee and to understand the specific benefits and features of the loyalty app. Additionally, it would be beneficial to understand how the loyalty program integrates with other marketing and operational aspects of the franchise.