factual

What support services will Auntie Annes furnish, and how will the timing of these services be determined?

Auntie_Annes Franchise · 2024 FDD

Answer from 2024 FDD Document

se deadlines for a fee. We may terminate your Franchise Agreement (without refunding the Initial Franchise Fee) if you fail to meet the Site

Approval Deadline or the Construction Start Deadline and fail to cure such failure within 30 days or if you do not meet the Opening Deadline. (Franchise Agreement, Section 6.5)

Obligations After Opening

During the operation of your Shop, we will fulfill the following obligations:

  • 1. Approved Suppliers. We will continue to identify Approved Suppliers for Goods to be used in your Shop. (Franchise Agreement, Sections 7.1 and 7.2)
  • 2. Review Proposed Suppliers and Goods. If you would like to offer products or use any Goods that we have not approved or to purchase or lease from a Supplier that we have not approved, you must submit a written request for approval and provide us with any information that we request, which we will review and approve or disapprove. See Item 8. (Franchise Agreement, Sections 7.3)
  • 3. Ad Fund Management. We will manage the Ad Fund as described below in this Item. (Franchise Agreement, Section 10.3)
  • 4. Update Standards and Manuals. We will provide you with notice of any changes to our specifications, Standards, or the Manuals. You must immediately adopt any supplements to the Manuals that we provide to you. (Franchise Agreement, Section 8.3)
  • 5. Review Advertising. We will approve or disapprove any of your proposed Advertising and Promotional Content (as defined below) that requires our prior written approval. (Franchise Agreement, Section 10.1.B.)
  • 6. Support Services. We will furnish you with those support services we consider advisable. We may provide these services on-site, off-site, by telephone, or through other means. Timing will depend on the availability of our personnel. (Franchise Agreement, Section 11.5)
  • 7. Relocation Review. We will evaluate sites to which you propose to relocate your Shop in accordance with the site selection criteria provisions described above in this Item. (Franchise Agreement, Section 5.5)
  • 8. Remodeling Review. We will review and approve or disapprove your general contractor and proposed replacement designs, furniture, fixtures, equipment, and décor when you refresh or remodel your Shop. (Franchise Agreement, Section 12.6)

Advertising

Our Advertising. We are not obligated to conduct any advertising. We may periodically formulate, develop, produce, and conduct, at our sole discretion, advertising or promotional programs in such forms and media as we determine to be most effective. We may make available to you for you to purchase approved advertising and promotional materials, including signs, posters, collaterals, etc. that we have prepared.

Ad Fund. We will allocate your Advertising Contributions to a fund for the advertising and promotion of the Shops, the Proprietary Marks, and the System (the "Ad Fund"). Currently, you must make a monthly Advertising Contribution to the Ad Fund in the amount of 1.5% of Net Sales for Shops located in Other Locations and 3% of Net Sales for Shops located in Streetside

Locations. We may increase the Advertising Contribution by notice to franchisees. However, your required Advertising Contribution and Local Marketing Obligation will collectively not exceed 5% of your Net Sales. Your Advertising Contribution is in addition to your Local Marketing Obligation and your Grand Opening Obligation (as defined below).

We currently do not, and are not required to, maintain the Ad Fund, Advertising Contribution you paid, or income earned from contributions to the Ad Fund in a separate account from our other money. Our Shops will contribute to the Ad Fund in the same manner and in the same amounts as similarly-situated franchised Shops.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 61–77)

What This Means (2024 FDD)

According to Auntie Annes' 2024 Franchise Disclosure Document, the franchisor will furnish franchisees with support services that they consider advisable. These services may be provided on-site, off-site, by telephone, or through other means. The timing of these support services will depend on the availability of Auntie Annes' personnel.

Prior to opening a shop, Auntie Annes will review the franchisee's selected location and approve it if it meets their minimum site criteria. While they may assist in site selection, they are not obligated to do so. After the shop opens, Auntie Annes will continue to identify approved suppliers for goods, review proposed suppliers and goods, manage the Ad Fund, update standards and manuals, review advertising, provide support services, review relocation sites, and review remodeling plans.

For the first two full shops, the initial franchise fee includes on-site opening training and assistance from one or more representatives, typically for about seven days after the certificate of occupancy and health permit are obtained. For concession shops, Auntie Annes may send a representative for up to two days, but is not required to do so. Additional on-site training or assistance can be requested for a fee of $500 per trainer per day, plus travel and living expenses, though Auntie Annes is not obligated to provide it.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.