What is the timeframe during which an Auntie Annes franchisee must fulfill their grand opening advertising obligation?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
be Businesses operating under the Marks and the System, (ii) permit the other businesses to continue to operate under another name anywhere, and/or (iii) permit the businesses to operate under another name and convert your Franchised Business and existing Businesses to such other name.
12. Section 6.5 (Opening and Development Deadlines):
| EVENT | COMPLETION DEADLINE |
|---|---|
| Site Approval Deadline (Section 6.5.A.) | Within 150 days after the Effective Date |
| Construction Start Deadline (Section 6.5.B.) | Within 270 days after the Effective Date |
| Opening Deadline (Section 6.5.C.) | Within 360 days after the Effective Date |
13. Section 10.1.C. (Grand Opening Advertising):
Your Grand Opening Obligation is that you must spend at least [For Other Locations: $2,500 For Streetside Locations: $7,500] in grand opening advertising promoting the opening of your Franchised Business within the period beginning 90 days before the Opening Date and ending 90 days after the Opening Date.
14. Section 10.1.E. (Local Marketing Obligation):
Your Local Marketing Obligation shall be equal to 1% of the Net Sales of your Franchised Business per calendar quarter.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the timeframe for fulfilling the grand opening advertising obligation is a period that begins 90 days before the store's opening date and extends until 90 days after the opening date.
This 180-day window provides Auntie Annes franchisees with a substantial period to promote their new location. This allows for both pre-opening marketing to generate initial interest and post-opening advertising to sustain momentum and build a customer base.
The specific amount a franchisee must spend on grand opening advertising varies depending on the location type. For locations other than streetside locations, the minimum spending requirement is $2,500, while for streetside locations, it is $7,500. For other locations, the minimum spend is $1,000, but Auntie Anne's has the right to increase the minimum amount to $5,000 depending on factors such as the type of unit, location, size, territory demographics, and related factors. For other locations, the minimum spending requirement is $5,000, while for streetside locations, it is $15,000. These amounts are intended to cover advertising for both the Auntie Annes brand and any co-branded franchise.