When is the Auntie Annes reimbursement of services after default fee due?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| | and | | | | | court | | | | | costs. | | | | | If | | | | | we | | | | | terminate the Franchise Agreement for your | | | | | default, you must pay us all our expenses | | | | | from your default or termination, including | | | | | reasonable attorneys' and experts' fees. |
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| Reinstatement Fee | 10% of the amount of the then-current Initial Franchise Fee, plus Royalty Fees that would have been payable in period between termination and reinstatement | Before reinstatement | If we terminate your Franchise Agreeme |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, if Auntie Annes terminates the Franchise Agreement and the franchisee fails to de-identify the shop, resulting in Auntie Annes making the required changes, the de-identification fee is due on invoice. The amount of this fee is Auntie Annes's actual costs, plus interest and an administrative fee equal to 15% of their actual costs.
This means that if a franchisee defaults on their agreement and Auntie Annes terminates the agreement, the franchisee is responsible for removing all Auntie Annes branding from the shop. Should the franchisee fail to do so, Auntie Annes will handle the de-identification process and bill the franchisee for all associated costs.
The costs include not only the direct expenses incurred by Auntie Annes but also an additional 15% administrative fee, plus interest. This could potentially be a significant expense, so it is in the franchisee's best interest to ensure the shop is properly de-identified if the agreement is terminated to avoid these extra charges.