Can Auntie Annes modify the Technology Fee and payment frequency?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
We may require you to pay to us, or a third party that we designate, the then-current technology fee that we specify from time to time (the "Technology Fee").
The Technology Fee may be based on a percentage of Net Sales, fixed fees, and/or usage fees.
We may modify the Technology Fee and payment frequency from time to time.
We may replace or supplement other technology-related fees that we collect (such as the Ordering Support Fee) with the Technology Fee.
We will use the Technology Fee to defray our costs of developing, implementing, upgrading, operating, maintaining, supporting, or providing any technology-related products, services, programs, systems, or platforms that we, in our sole discretion, deem appropriate.
We may add, delete, or otherwise modify the products, services, programs, systems, and platforms that are funded by the Technology Fee from time to time.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, Auntie Annes retains the right to modify both the Technology Fee and its payment frequency. This fee is designed to cover the costs associated with developing, implementing, upgrading, operating, maintaining, supporting, or providing any technology-related products, services, programs, systems, or platforms that Auntie Annes deems appropriate.
The Technology Fee itself may be structured in various ways, including as a percentage of Net Sales, fixed fees, or usage fees. This flexibility allows Auntie Annes to adjust the fee structure based on the evolving technological needs of the franchise system. Auntie Annes also has the option to replace or supplement other technology-related fees, such as the Ordering Support Fee, with the Technology Fee.
For a prospective franchisee, this means that the costs associated with technology could change over time. It is important to stay informed about any potential modifications to the Technology Fee and how those changes might impact the overall profitability of the Auntie Annes franchise. Franchisees should maintain open communication with Auntie Annes to understand the rationale behind any adjustments to the Technology Fee and how the funds are being used to enhance the franchise system's technology infrastructure.