How is the Auntie Annes Supply Chain Fee calculated, and to whom is it paid?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| Purchasing Program Fee | Reasonable membership fees assessed by the Purchasing Program | As incurred | If we designate or establish any purchasing and/or distribution cooperatives/ associations/ programs ("Purchasing Programs"), you must become a member and pay any membership fees assessed. We currently do not have any Purchasing Programs which require membership fees. |
| Supply Chain Fee | Currently, $0.26 to $0.31 per case purchased throu |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, a Supply Chain Fee is imposed to offset expenses related to managing the supply chain. This fee currently ranges from $0.26 to $0.31 per case purchased.
The Supply Chain Fee is assessed on purchases made through certain Appointed Distributors, as defined in Item 8 of the FDD. This fee is collected by Auntie Annes and/or its affiliates directly from these Appointed Distributors, not directly from the franchisee. The FDD specifies that the Supply Chain Fee is subject to change over time.
Prospective franchisees should note that while the fee is not directly paid by them, it is factored into the cost of goods purchased from Appointed Distributors. Therefore, changes in the Supply Chain Fee can affect the overall cost of supplies for the Auntie Annes franchise. Franchisees should regularly review costs from Appointed Distributors to understand how the Supply Chain Fee impacts their expenses.