What does the Repeated Inspection Fee for Auntie Annes cover?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| repetition of | |||
| violations | |||
| Failure to Comply with Standards or Law Fee | Up to a $5,000 fee plus our reasonable expenses connected with any inspection, examination, or analysis of products or your Shop | On invoice | Payable if our inspection shows the products have been adulterated in any way or that your Shop does not comply with applicable laws. If (i) we inspect your Shop and find a violation and we find the same violation at another inspection within one year, (ii) you fail to comply with any remedial measures we require, (iii) you fail to cooperate in any inspection, or (iv) there have been repeated violations, then you must pay up to a $5,000 fee for the inspection, in addition to the travel expenses of our inspectors or representatives and any other expenses we incur, including attorneys' fees. These remedies are not exclusive. |
| Development Deadline Extension Fee | $2,500 per missed deadline | On invoice | Payable if you fail to meet the Site Approval Deadline, Construction Start Deadline, or Opening Deadline (each as defined in Item 11) or if we grant you an extension to any of these deadlines. We may terminate the Franchise Agreement if you fail to open by the Opening Deadline or if you fail to cure a default of the Site Approval or Construction Start Deadlines. |
| Repeated Inspection Fee | $500 Non compliance Fee, plus any costs we are charged by third-p |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the Repeated Inspection Fee is incurred when the franchisor or its representative inspects a franchisee due to a repeated or continuing failure to comply with any provision of the Franchise Agreement. In such cases, the franchisee must pay Auntie Annes the cost of the inspection.
This cost includes a $500 non-compliance fee, plus any costs Auntie Annes is charged by third-party inspectors or otherwise incurs. It also covers the travel and living expenses of Auntie Annes's representatives during the inspection.
For a prospective Auntie Annes franchisee, this means consistently adhering to the standards and requirements outlined in the Franchise Agreement is crucial. Failure to do so can result in not only the cost of rectifying the non-compliance but also the added expense of repeated inspections. This fee is in addition to any other penalties or costs associated with the initial non-compliance, making it essential to maintain compliance to avoid these additional financial burdens.