What is the minimum amount that an Auntie Annes franchisee must spend on grand opening advertising?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
be Businesses operating under the Marks and the System, (ii) permit the other businesses to continue to operate under another name anywhere, and/or (iii) permit the businesses to operate under another name and convert your Franchised Business and existing Businesses to such other name.
12. Section 6.5 (Opening and Development Deadlines):
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Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the minimum grand opening advertising expenditure depends on the location type. For locations other than streetside locations, the minimum is $2,500. For streetside locations, the minimum grand opening advertising expenditure is $7,500. This amount must be spent within the period starting 90 days before the store's opening date and ending 90 days after the opening date.
This grand opening obligation is separate from both the ongoing advertising contribution and any local advertising requirements. Auntie Annes retains the right to determine the appropriate minimum amount, which may exceed $1,000 but shall not exceed $5,000, for the franchisee's Grand Opening Obligation based upon the type of unit in question, location, size, territory demographics, and related factors.
Prospective Auntie Annes franchisees should factor this initial advertising expense into their startup costs. They should also clarify with Auntie Annes the specific grand opening obligation applicable to their location type to budget accordingly. Understanding these obligations is crucial for a successful launch and sustained growth of the franchise.