What specific reports must an Auntie Annes franchisee submit weekly?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
The Advertising Contribution shall be in an amount we determine, in our sole discretion, which when combined with the Local Marketing Obligation (as specified in Section 10.1.E. (Local Marketing Obligation)) shall not exceed 5% of the Net Sales of the Franchised Business, payable each week on the Net Sales of the Franchised Business for the preceding week (or on any other basis stated in the Manuals or in our written notice to you). We will collect the Advertising Contribution from you based on the portion of the Net Sales of the Franchised Business that are attributable to products that we and the Co-Branded Franchisor mutually agree, in our and its sole discretion, to credit towards the Auntie Anne's® side of the Franchised Business. Pursuant to the Co-Branded Agreement, the Co-Branded Franchisor will collect an advertising contribution from you based on the remaining portion of the Net Sales of the Franchised Business that are attributable to products that we and the Co-Branded Franchisor mutually agree, in our and its sole discretion, to credit towards the Co-Branded Franchise's side of the Franchised Business.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes' 2024 Franchise Disclosure Document, franchisees are required to make an advertising contribution, the amount of which is determined by Auntie Annes. This contribution, when combined with the Local Marketing Obligation, cannot exceed 5% of the Net Sales of the Franchised Business. This advertising contribution is payable each week based on the Net Sales of the Franchised Business for the preceding week.
Auntie Annes will collect the Advertising Contribution from franchisees based on the portion of the Net Sales of the Franchised Business that are attributable to products that Auntie Annes and any Co-Branded Franchisor mutually agree to credit towards the Auntie Anne's side of the Franchised Business. If applicable, the Co-Branded Franchisor will collect an advertising contribution from franchisees based on the remaining portion of the Net Sales of the Franchised Business that are attributable to products that Auntie Annes and the Co-Branded Franchisor mutually agree to credit towards the Co-Branded Franchise's side of the Franchised Business.
In summary, Auntie Annes franchisees must submit weekly payments for the advertising contribution based on a percentage of net sales. The specific reports required to calculate and document these net sales for the advertising contribution are not detailed in the provided FDD excerpts. A prospective franchisee should inquire with Auntie Annes about the exact weekly reporting requirements to ensure full compliance.