What is the range of the Lease Renewal/Extension Review Fee that Auntie Annes franchisees may be charged?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| $200 monthly | As incurred | If you sublease a Shop from us, you must pay us this fee to compensate us for our administrative expenses and is in addition to any fees under the sublease such as rent, insurance, public utility charges, late fees, alterations and improvements. |
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| Lease Renewal/ Extension Review Fee | Our then-current fee. Currently, ranges from $500 for a lease term of two years or less to $2,000 for a term of five years or more | As incurred | If you renew a lease or a lease is extended by the landlord |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees may incur a Lease Renewal/Extension Review Fee. This fee is assessed if a franchisee renews their lease or the lease is extended by the landlord for a period of 12 months or more. In such cases, the franchisee must obtain Auntie Annes's approval of the lease and pay the fee, which Auntie Annes may change from time to time. The review of the lease by Auntie Annes will be limited to determining whether it complies with the Franchise Agreement.
The current Lease Renewal/Extension Review Fee ranges from $500 for a lease term of two years or less to $2,000 for a term of five years or more. This fee is due as incurred, meaning it must be paid when the lease renewal or extension review takes place.
Prospective Auntie Annes franchisees should be aware of this potential cost when considering lease renewals or extensions. It is important to factor this fee into financial planning and to understand that Auntie Annes has the right to change the fee in the future. Franchisees should also note that Auntie Annes's review of the lease is limited to compliance with the Franchise Agreement, so franchisees may need to seek additional legal or real estate advice to ensure the lease terms are favorable.