When is the royalty fee due for Auntie Annes franchises?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| Royalty Fee | Currently, 7% of Net Sales, which we may increase in our sole discretion to 8% of Net Sales, for all Shops except: Cinnabon Co Branded Shops in Other Locations: Currently, 7% of Net Sales attributed to Auntie Anne's, which we may increase in our sole discretion to 8% of Net Sales; 6% of Net Sales attributed to Cinnabon Cinnabon Co Branded Shops in Streetside Locations: 6% of Net Sales Jamba Co-Branded Shops in Other Locations: Currently, 7% of Net Sales attributed to Auntie Anne's, which we | Payable weekly on the date specified in the Manuals (the "Payment Due Date") | See Note 2 for the definition of "Net Sales." See Note 3 for the definition of "Other Locations" and "Streetside Locations." For Cinnabon Co-Branded Shops in Other Locations, we will collect our Royalty Fee (which is 7% to 8% of Net Sales) based on the portion of Net Sales attributable to products that we and Cinnabon have agreed to credit to the Auntie Anne's side of the Co Branded Shop, and Cinnabon will collect a separate Royalty Fee (which is 6% of Net Sales) based on the portion of Net Sales attributable to products that we and Cinnabon have agreed to credit to the Cinnabon side of the Co-Branded Shop. For Jamba Co-Branded Shops in Other Locations, we will collect our Royalty Fee (which is 7% to 8% of Net Sales) based on the portion of Net Sales attributable to products that we and Jamba have agreed to credit to the Auntie Anne's side of the Co Branded Shop, and Jamba will collect a separate Royalty Fee (which is 6% to 7% of Net Sales) based on the portion of Net Sales attributable to products that we and Jamba have agreed to credit to the Jamba side of the Co-Branded Shop. |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the royalty fee is payable weekly on the date specified in the manuals, referred to as the "Payment Due Date." The royalty fee is a percentage of net sales. For most Auntie Anne's shops, the royalty fee is currently 7% of Net Sales, but Auntie Anne's has the discretion to increase it to 8%.
For Cinnabon Co-Branded Shops in Other Locations, the royalty fee is currently 7% of Net Sales attributed to Auntie Anne's, which Auntie Anne's may increase to 8% of Net Sales. Additionally, 6% of Net Sales attributed to Cinnabon is collected by Cinnabon. For Cinnabon Co-Branded Shops in Streetside Locations, the royalty fee is 6% of Net Sales.
For Jamba Co-Branded Shops in Other Locations, the royalty fee is currently 7% of Net Sales attributed to Auntie Anne's, which Auntie Anne's may increase to 8% of Net Sales. Jamba collects a separate royalty fee of currently 6% of Net Sales attributed to Jamba, which Jamba may increase to 7% of Net Sales. Understanding the specific "Payment Due Date" outlined in the manuals is crucial for franchisees to ensure timely payments and avoid potential penalties.