Does Auntie Annes make approved advertising and promotional materials available for franchisees to purchase?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
Our Advertising. We are not obligated to conduct any advertising. We may periodically formulate, develop, produce, and conduct, at our sole discretion, advertising or promotional programs in such forms and media as we determine to be most effective. We may make available to you for you to purchase approved advertising and promotional materials, including signs, posters, collaterals, etc. that we have prepared.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 61–77)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, Auntie Annes may make approved advertising and promotional materials available for franchisees to purchase. These materials can include signs, posters and other collateral items that Auntie Annes has prepared. However, Auntie Annes is not obligated to conduct any advertising.
As an Auntie Annes franchisee, you are obligated to contribute to an advertising fund. The amount is 1.5% of Net Sales for Shops located in Other Locations and 3% of Net Sales for Shops located in Streetside Locations. Auntie Annes may increase this contribution with notice, but the total advertising contribution and local marketing obligation will not exceed 5% of Net Sales.
The advertising fund is used for advertising and promotion of the Shops, Proprietary Marks, and the System. Auntie Anne's has sole authority over advertising programs, creative concepts, materials, and media used, as well as the allocation of advertising expenditures. In 2023, the Ad Fund was spent on media placement (28%), production and agency fees (37%), guest response programs and menu innovation projects (9%), brand and category marketing expenses (25%), and administrative expenses (1%).