When is the Auntie Annes Relocation Fee due?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
(estimated to be $1,500 to $5,000), (ii) the cost to repair and replace lost or damaged items (less the security deposit), (iii) the cost to remove any customizations (which will be prorated), and (iv) if terminated in first year of the lease, the maximum monthly rental rate |
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| for each month between the termination date and the first anniversary of lease. | |||
| Remote Location Baking License Fee | $3,000 per year | As Incurred | For certain venues, such as stadiums, which may not be suitable for a full franchise or other program, we may allow you to bake products at your Shop and sell products at the alternate location. This annual fee applies when baking is done at a location remote from the franchised location. |
| Relocation Fee | 10% of the then current Initial Franchise Fee | Before you relocate | If you relocate to a new site that we have accepted, you must pay the Relocation Fee. |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, the Relocation Fee is due before you relocate to a new site that Auntie Anne's has accepted. The fee is 10% of the then-current Initial Franchise Fee.
This means that if a franchisee wishes to move their Auntie Anne's store to a different location and Auntie Anne's approves the new site, the franchisee must pay this Relocation Fee before the relocation can occur. The fee is calculated as a percentage of the initial franchise fee, so the exact dollar amount will vary depending on what the current initial franchise fee is at the time of relocation.
Additionally, if the franchisee and Auntie Anne's agree to extend the term of the Franchise Agreement (or enter into a new agreement) to match the term of the new lease at the relocated site, the franchisee must also pay a Relocation Extension Fee of $1,500 per year that the term is extended. This fee is due before Auntie Anne's signs the relocation Franchise Agreement.