Does the Net Sales definition for Auntie Annes include revenue from catering services?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
B. Section 2.1 (Initial Term) of the Agreement is deleted in its entirety and replaced with the following:
Term. The term of this Agreement (the "Term") will begin on the Effective Date and will end 10 years from the date that your Franchised Business opens for business (the "Opening Date"), unless this Agreement is terminated sooner as provided in other sections of this Agreement.
- C. Section 2.2 (Renewal Term) of the Agreement is deleted in its entirety.
- D. Section 4.3 (Catering and Delivery Services) of the Agreement is deleted in its entirety.
- E. Section 5.3 (Acceptance of Proposed Location) of the Agreement is deleted and replaced with the following:
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
Based on the 2024 Auntie Anne's Franchise Disclosure Document, there is no explicit definition of "Net Sales" provided in the excerpts. However, the document does mention that for Concession Shops (concession trailer / food truck / temporary stand with a farmers' market), Section 4.3 (Catering and Delivery Services) of the Franchise Agreement is deleted in its entirety.
This deletion suggests that standard catering and delivery services might not be part of the typical Auntie Anne's franchise model for these types of locations. It's important to note that the advertising contribution franchisees must pay is based on a percentage of Net Sales. Therefore, understanding exactly what constitutes Net Sales is crucial for calculating these ongoing costs.
To fully understand whether catering services are included in the Net Sales definition, a prospective franchisee should ask Auntie Anne's for a complete definition of "Net Sales" and clarification on whether catering or delivery sales would be included, especially if they are considering a non-traditional location like a Concession Shop. This information is essential for accurate financial planning and understanding the full scope of the franchise agreement.