What services do GoTo Supply and GoTo Rewards provide to Auntie Annes franchisees?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
e deposited in the Ad Fund, and (iii) GoTo Systems received $2,297,029 in payments from Approved Suppliers related to purchases made by our franchisees,
as well as purchases made by franchisees of other franchise systems in the GoTo Foods Portfolio. These figures are unaudited and internally generated.
In administering our gift card program, GoTo Rewards receives an administration fee based on the gross gift card sales made. During Fiscal Year 2023, GoTo Rewards collected $10,779 from providing products or services to our franchisees in connection with the gift card program.
Currently, GoTo Systems and GoTo Supply provide supply chain, quality assurance, distribution, and logistics services for our franchise system. These services include negotiating with Suppliers for the sale of Goods and Proprietary Goods to distributors who will sell and distribute these items to the franchisees, appointing one or more distributors to service our franchisees (the "Appointed Distributors"), and managing the inbound distribution logistics associated with direct shop delivery between distributors and franchisees. GoTo Systems and GoTo Supply recover costs related to performing these services by collecting a per-case distribution fee for all cases sold by the Appointed Distributors to our franchisees and from other logistics-related programs. GoTo Systems and GoTo Supply have this same arrangement with the other franchise systems within the GoTo Foods Portfolio. During Fiscal Year 2023, collectively for all franchise systems within the GoTo Foods Portfolio, GoTo Systems and GoTo Supply together collected approximately $6,986,141 in distribution case fees and logistics savings.
Proportion of Purchases Subject to Specifications. Currently, we estimate that your purchases from Approved Suppliers and otherwise under our Standards will be about 90% of the total purchases and lease of products and services needed to establish the Shop and about 95% of the total purchases and leases of products and services needed to operate a Shop.
Cooperatives and Purchasing Arrangements. Currently, neither we nor AA have arranged any purchasing and/or distribution cooperatives, associations, or programs (collectively, "Purchasing Programs") among our franchisees. We have the right to form Purchasing Programs at any time.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 54–59)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, GoTo Supply provides supply chain, quality assurance, distribution, and logistics services for the franchise system. These services include negotiating with suppliers for the sale of goods and proprietary goods to distributors, appointing distributors to service franchisees, and managing inbound distribution logistics associated with direct shop delivery between distributors and franchisees. GoTo Supply recovers costs by collecting a per-case distribution fee for all cases sold by the appointed distributors to Auntie Annes franchisees and from other logistics-related programs. During Fiscal Year 2023, GoTo Systems and GoTo Supply collected approximately $6,986,141 in distribution case fees and logistics savings across all franchise systems within the GoTo Foods Portfolio.
GoTo Rewards administers Auntie Annes's gift card program. In Fiscal Year 2023, GoTo Rewards collected $10,779 from providing products or services to franchisees in connection with the gift card program.
It is important to note that while GoTo Supply provides these services, it is not an approved supplier for any goods. Auntie Annes retains the right to change its distribution arrangements and purchasing arrangements in the future, which could impact the services provided by GoTo Supply and GoTo Rewards.