How is the Auntie Annes Technology Fee calculated?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
We periodically may add, delete, or otherwise modify the products and services that are included in the Ordering Support Fee.
- E.
Technology Fee.
We may require you to pay to us, or a third party that we designate, the then-current technology fee that we specify from time to time (the "Technology Fee").
The Technology Fee may be based on a percentage of Net Sales, fixed fees, and/or usage fees.
We may modify the Technology Fee and payment frequency from time to time.
We may replace or supplement other technology-related fees that we collect (such as the Ordering Support Fee) with the Technology Fee.
We will use the Technology Fee to defray our costs of developing, implementing, upgrading, operating, maintaining, supporting, or providing any technology-related products, services, programs, systems, or platforms that we, in our sole discretion, deem appropriate.
We may add, delete, or otherwise modify the products, services, programs, systems, and platforms that are funded by the Technology Fee from time to time.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, the Technology Fee may be implemented by Auntie Annes to cover the costs of technology-related products, services, programs, systems, or platforms. The Technology Fee is not fixed; Auntie Anne's has the discretion to modify the fee and payment frequency over time.
The Technology Fee may be calculated in a few different ways. It can be based on a percentage of Net Sales, set as fixed fees, determined by usage fees, or a combination of these methods. This flexibility allows Auntie Anne's to adjust the fee structure as needed to reflect the actual costs of providing technology support.
It's also important to note that Auntie Anne's may choose to replace or supplement other technology-related fees, such as the Ordering Support Fee, with this Technology Fee. This means that franchisees could see changes in their fee structure as Auntie Anne's refines its approach to technology funding. Prospective franchisees should inquire about the current Technology Fee, how it is calculated, and what technology-related products, services, programs, systems, or platforms it supports to fully understand this ongoing cost.