When is the Auntie Annes Renewal Fee due?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| Renewal Fee | 20% of the then current Initial Franchise Fee | Before we sign the renewal franchise agreement. | Payable to us if you enter into a renewal term. See Item 17. |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the Renewal Fee is due before signing the renewal franchise agreement. The Renewal Fee is 20% of the then-current Initial Franchise Fee. This fee is payable to Auntie Annes if a franchisee enters into a renewal term, as further detailed in Item 17 of the FDD.
For a prospective Auntie Annes franchisee, this means that if they choose to renew their franchise agreement at the end of its initial term, they will need to pay a renewal fee equivalent to 20% of whatever the current initial franchise fee is at that time. This could be a substantial cost, so franchisees should factor it into their long-term financial planning.
It is important to note that the renewal fee is due before the new franchise agreement is signed, so franchisees will need to have the funds available at that time. Reviewing Item 17, as referenced in the table, will provide additional details regarding the renewal process and any other conditions or requirements for renewing the franchise agreement with Auntie Annes.