To whom will payments for the Auntie Annes Millwork expenditure be made?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
ed by us and/or the Co-Branded Franchisor. All other fees will be charged by (x) us or the Co-Branded Franchisor, but not both or (y) jointly by both us and the Co-Branded Franchisor (and split between the two of us).
ITEM 7. ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT: FULL SHOP
| Type of Expenditure | Amount of Expenditure | Method of Payment | When Payments Are | To Whom Payment Will | |
|---|---|---|---|---|---|
| Low | High | Fayineiit | Due | Be Made | |
| Initial Franchise Fee 1 | $35,500 | $35,500 | Lump sum | At signing of Franchise Agreement | Us |
| Construction and Build Out Costs 2 | $27,000 | $265,000 | As incurred | As arranged | Contractors |
| Permitting 3 | $2,000 | $4,000 | As incurred | Before opening | Government agencies |
| Equipment Package 4 | $21,000 | $64,500 | Lump sum | Before opening | Vendors |
| Millwork 5 | $5,000 | $28,000 | As incurred | Before opening | Contractors |
| Furniture 6 | $0 | $2,500 | As incurred | Before opening | Vendors |
| Menu Board, | $250 | $23,000 | As incurred | Before opening | Vendors |
| Graphics, and Interior | |||||
| Signage 7 | |||||
| Exterior Signage 8 | $3,000 | $8,300 | Lump sum | Before opening | Vendors |
| Computer System 9 | $7,400 | $27,400 | As incurre |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 44–54)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, payments for millwork will be made to contractors. The estimated cost for millwork varies depending on the type of Auntie Annes store. For a standard store, the millwork expenditure ranges from $5,000 to $28,000. For another type of store, the expenditure ranges from $20,000 to $70,000. For yet another store type, the expenditure ranges from $20,000 to $34,000. These payments are typically due before opening and are categorized as 'as incurred,' meaning they are paid as the expenses arise during the construction or build-out phase.
Millwork encompasses the construction and installation of custom woodwork and related components in the Auntie Annes store. This can include items such as cabinets, counters, shelving, and decorative trim. Since these elements are often specific to the store's design and layout, Auntie Annes franchisees will likely work with local contractors to complete the millwork. The 'as incurred' payment method means franchisees will need to manage their cash flow carefully during the build-out phase to ensure timely payments to contractors.
Prospective Auntie Annes franchisees should obtain detailed quotes from multiple contractors to accurately estimate millwork costs. They should also confirm with Auntie Annes whether there are any preferred contractors or specific millwork standards that must be followed. Understanding these requirements will help franchisees budget effectively and avoid unexpected expenses during the store's construction.