How often must an Auntie Annes shop be refreshed and remodeled?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
(estimated to be $1,500 to $5,000), (ii) the cost to repair and replace lost or damaged items (less the security deposit), (iii) the cost to remove any customizations (which will be prorated), and (iv) if terminated in first year of the lease, the maximum monthly rental rate |
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| for each month between the termination date and the first anniversary of lease. | |||
| Remote Location Baking License Fee | $3,000 per year | As Incurred | For certain venues, such as stadiums, which may not be suitable for a full franchise or other program, we may allow you to bake products at your Shop and sell products at the alternate location. This annual fee applies when baking is done at a location remote from the franchised location. |
| Relocation Fee | 10% of the then current Initial Franchise Fee | Before you relocate | If you relocate to a new site that we have accepted, you must pay the Relocation Fee. |
| Relocation Extension Fee | $1,500 per year that the term is extended | Before we sign relocation Franchise Agreement | If you relocate to a new site and we agree to extend the term of your Franchise Agreement (or enter into a new Franchise Agreement) to match the term of your new lease, you must pay the Relocation Extension Fee in addition to the Relocation Fee. |
| Refresh/ Remodel Site Survey and Design Fee | Our then-current fee. Currently, such fee is approximately $1,200 to $6,000 depending on the scope of the required changes. | As incur |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees are required to refresh their shops every five years and remodel them every ten years. These refreshes and remodels are necessary to ensure that all Auntie Annes locations meet the franchisor's current standards.
To facilitate these updates, Auntie Annes may require franchisees to pay a fee for a site survey and/or design plan. This fee, payable to Auntie Annes, its affiliates, or its designee, currently ranges from approximately $1,200 to $6,000, depending on the scope of the required changes. This fee covers the inspection of the shop and the creation of a plan to ensure compliance with the brand's standards.
This requirement is fairly standard in the franchise industry, as franchisors need to maintain brand consistency and appeal across all locations. The costs associated with these periodic updates should be factored into a franchisee's long-term financial planning. It is important for prospective franchisees to understand the scope of these refreshes and remodels, as well as the potential costs, to accurately assess the financial viability of the franchise.