Can the monthly software license fee for the POS System change for an Auntie Annes franchise?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
roviders that facilitate this access. You must provide any assistance we require to integrate your POS System with our headquarters system at the earliest possible time and in the manner we prescribe. You must accurately, consistently, and completely record, structure, capture and provide all required information through your POS System in accordance with all applicable laws and protect such information as required.
To maintain a consistent reporting system, you must purchase or lease and use a POS System specified by us from a designated Approved Supplier. We estimate that the initial cost to you for the POS System and related necessary equipment, including installation and activation, currently ranges from $4,700 to $11,000 under the CapEx Program, depending on the number of terminals, travel costs, and other logistical factors. Under the CapEx Program, you must pay a monthly software license fee for the POS System that is currently $160 to $255 per month depending on your equipment configuration. If you choose to lease the POS System under the HaaS Program, you must pay a monthly software license and hardware lease fee for the POS System that is currently $285 to $473 per month depending on your equipment configuration and a one-time $300 activation fee. We will collect the monthly fees, which may change from time to time, and pay them to the vendor on your behalf.
Whether you are opening a new Shop or purchasing an existing Shop, we may, in our sole discretion, provide you with project management assistance related to, and coordinate the onboarding and configuration of, your POS System. You must pay us for such services our thencurrent POS System Administration Fee, which is currently estimated to be between $1,500 and $2,000. We or the POS System vendor may require you to purchase, license, or lease additional hardware or software. In addition, you may incur additional expenses if you require or would like additional equipment, training, or installation services.
In addition, there may be ongoing license, maintenance, and service fees associated with the maintenance and operation of the POS System. You must maintain your POS System and keep it in good repair and procure any services necessary for the POS System to communicate with our system.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 61–77)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, the monthly software license fee for the POS system is subject to change. If a franchisee chooses the CapEx Program, the current monthly software license fee is between $160 to $255, while the HaaS Program costs $285 to $473 monthly. Auntie Anne's collects these fees and pays the vendor.
This means that the franchisee should anticipate potential fluctuations in their monthly operating expenses. These changes could be due to vendor pricing adjustments, updates to the software, or modifications to the system requirements by Auntie Anne's. The franchisee bears the risk of these increased costs, which can impact their profitability.
Furthermore, Auntie Anne's can revise the specifications for the computer system, including the POS system, and franchisees are contractually required to make periodic upgrades and updates to remain compliant with Auntie Anne's standards. If Auntie Anne's requires a different POS system, the franchisee must purchase the new system, sign the required agreements, and pay any related POS System Support Fees. There are no contractual limitations on the frequency or cost of the obligation to upgrade and replace hardware and software for the computer system. This could lead to unexpected expenses for the franchisee.