What is the range of estimated costs for the Equipment Package for an Auntie Annes franchise?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
$3,300 | $4,000 | As incurred | Before opening | Vendors | | Additional Funds - 3 Months21 | $15,000 | $28,000 | As incurred | As incurred | Us, employees, vendors, etc. | | Total Initial | $107,540 | $249,400 | | | | | Investment22 | | | | | |## YOUR ESTIMATED INITIAL INVESTMENT: CINNABON CO-BRANDED SHOP 24
| Type of Expenditure | Amount of Expenditure | | Method of | When Payments Are | To Whom Payment Will | |---------------------------------------------------------------|-----------------------|-----------|-------------|-----------------------------------------|----------------------| | | Low | High | Payment | Due | Be Made | | Initial Franchise Fee 1 | $66,000 | $66,000 | Lump sum | At signing of Franchise Agreement | Us | | Construction and | $195,000 | $400,000 | As incurred | As arranged | Contractors | | Build Out Costs 2 | | | | | | | Permitting 3 | $3,000 | $6,400 | As incurred | Before opening | Government agencies | | Equipment Package 4 | $74,000 | $140,000 | Lump sum | Before opening | Vendors | | Millwork 5 | $20,000 | $70,000 | As incurred | Before opening | Contractors | | Furniture 6 | $0 | $2,600 | As incurred | Before opening | Vendors | | Menu Board, | $4,000 | $14,700 | As incurred | Before opening | Vendors | | Graphics, and Interior | | | | | | | Signage 7 | | | | | | | Exterior Signage 8 | $4,100 | $20,000 | Lump sum | Before opening | Vendors | | Computer System 9 | $7,400 | $27,400 | As incurred | Before opening | Vendors | | Smallwares 10 | $3,000 | $12,000 | As incurred | Before opening | Vendors |
| Type of Expenditure | Amount of E | Expenditure | Method of | When Payments Are | To Whom Payment Will |
|---|---|---|---|---|---|
| ,, , | Low | High | Payment | Due | Be Made |
| Architect/Engineer 11 | $8,500 | $27,000 | As incurred | Before opening | Architect |
| Rent 12 | $2,000 | $10,000 | Monthly | As arranged | Lessors |
| Grand Opening | $5,000 | $15,000 | As incurred | Before opening | Vendors or |
| Marketing 13 | Us | ||||
| Legal and Accounting | $7,000 | $12,000 | As incurred | Before opening | Lawyers and accountants |
| Fees 14 | |||||
| Insurance 15 | $1,575 | $8,200 | As incurred | Before opening | Insurance companies |
| Misc. Opening | $13,000 | $25,000 | As incurred | Before opening | Vendors |
| Costs/Office | |||||
| Supplies 16 | |||||
| Security Deposits 17 | $0 | $15,000 | As incurred | As incurred | Utility companies; lessors |
| Management Training | $0 | $4,000 | As incurred | Before opening | Us |
| Program Fee 18 | |||||
| Travel and Living | $4,600 | $6,900 | As incurred | Before opening | Airlines, |
| Expenses during | hotels and | ||||
| Training 18 | restaurants | ||||
| On-Site Training | $0 | $12,200 | As incurred | Before opening | Us |
| Fee 19 | |||||
| Opening Inventory 20 | $8,300 | $18,000 | As incurred | Before opening | Vendors |
| Additional Funds - 3 Months 21 | $15,000 | $78,000 | As incurred | As incurred | Us, employees, vendors, etc. |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 44–54)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the cost of the Equipment Package varies depending on the type of shop. For a standard Auntie Annes shop, the estimated cost for the equipment package ranges from $74,000 to $140,000. For a Full Shop, the equipment package is estimated to cost between $21,000 and $64,500. If opening a Trailer/Truck (Concession Shop), the equipment package is estimated to cost between $10,300 and $46,500.
The Equipment Package includes essential kitchen equipment and machinery that must be purchased or leased from approved suppliers. These items must comply with Auntie Annes' standards, and for Co-Branded Shops, they must also meet the standards of the Co-Branded Franchisor.
The actual costs for the Equipment Package can fluctuate based on factors such as building codes and health requirements specific to the state where the shop is located. These variations highlight the importance of researching local regulations and working closely with approved suppliers to ensure compliance and manage expenses effectively.
Prospective franchisees should carefully consider the type of Auntie Annes shop they plan to open and factor in potential regional differences in regulations and costs when budgeting for the Equipment Package. Understanding these variables is crucial for accurate financial planning and successful establishment of the franchise.