What are the principal functions of the POS System that Auntie Annes requires?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
p and $7,400 and $16,400 for a Concession Shop, depending on the size of your Shop. For a Co-Branded Shop, the Computer System that we require meets both our and the Co-Branded Franchisor's standards. You may incur
additional expenses if you require additional equipment, training, or installation services. We may require you to purchase, license, or lease additional hardware or software.
The Computer System includes a POS System that we specify, the principal functions of which are to manage permanent financial records of sales transactions at your Shop, cash control, inventory control, and menu and price change control, among other things. We will have independent electronic and manual access to certain information within the POS System and there are no contractual limitations on our right to access this information. We have developed interfaces with our preferred providers 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 mont
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 61–77)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the principal functions of the required Point of Sale (POS) system include managing financial records of sales transactions, cash control, inventory control, and menu and price change control. Auntie Annes retains independent electronic and manual access to the information within the POS system, with no contractual limitations on this access. Franchisees must assist in integrating their POS system with Auntie Anne's headquarters system and accurately record all required information through the POS system, complying with all applicable laws and protecting the data.
The initial cost for the POS system and related equipment ranges from $4,700 to $11,000 under the CapEx Program, depending on factors like the number of terminals and travel costs. Franchisees also pay monthly fees. Under the CapEx Program, the monthly software license fee ranges from $160 to $255. Alternatively, under the HaaS Program, franchisees pay a monthly software license and hardware lease fee ranging from $285 to $473, plus a one-time $300 activation fee. Auntie Annes collects these monthly fees and pays the vendor.
Auntie Annes may revise the specifications for the POS system and requires franchisees to make periodic upgrades and updates to remain compliant with their standards. Franchisees are responsible for the costs associated with these changes, including purchasing new systems and signing necessary agreements. The total annual cost to license, operate, and support the POS system is estimated to be $3,724 to $6,063 under the CapEx Program and $5,232 to $8,680 under the HaaS Program. This includes license and lease fees, P2PE software license fees, POS System Support Fee, and Back Office and Polling Software Fee, but excludes per-transaction fees, which are subject to change.
Prospective franchisees should be aware of the ongoing costs and potential for required upgrades to the POS system. They should also factor in the cost of a dedicated iPad or Windows tablet/computer for the Learning Management System, which has an annual license fee of $210. Understanding these technology requirements and associated costs is crucial for budgeting and operational planning.