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What is the total estimated low and high range for the Auntie Annes initial investment?

Auntie_Annes Franchise · 2024 FDD

Answer from 2024 FDD Document

| Low | High | Payment | Due | Be Made | | Initial Franchise Fee 1 | $71,000 | $71,000 | Lump sum | At signing of Franchise Agreement | Us | | Construction and | $322,000 | $503,000 | As incurred | As arranged | Contractors | | Build Out Costs 2 | | | | | |

| Type of Expenditure | Amount of | Expenditure | Method of | When Payments Are | To Whom Payment Will | |----------------------------------------------------------------|-----------|-------------|-------------|-------------------|----------------------------------------| | Type of Experience | Low | High | Payment | Due | Be Made | | Permitting 3 | $2,500 | $12,000 | As incurred | Before opening | Government agencies | | Equipment Package 4 | $60,000 | $195,000 | Lump sum | Before opening | Vendors | | Millwork 5 | $20,000 | $34,000 | As incurred | Before opening | Contractors | | Furniture 6 | $0 | $12,000 | As incurred | Before opening | Vendors | | Menu Board, | $20,000 | $22,000 | As incurred | Before opening | Vendors | | Graphics, and Interior | | | | | | | Signage 7 | | | | | | | Exterior Signage 8 | $12,500 | $56,000 | Lump sum | Before opening | Vendors | | Computer System 9 | $7,400 | $27,400 | As incurred | Before opening | Vendors | | Smallwares 10 | $8,500 | $12,000 | As incurred | Before opening | Vendors | | Architect/Engineer 11 | $8,500 | $18,000 | As incurred | Before opening | Architect | | Rent 12 | $4,000 | $10,000 | Monthly | As arranged | Lessors | | Grand Opening | $5,000 | $15,000 | As incurred | Before opening | Vendors or | | Marketing 13 | | | | | Us | | Legal and Accounting | $7,000 | $12,000 | As incurred | Before opening | Lawyers and accountants | | Fees 14 | | | | | | | Insurance 15 | $1,575 | $8,200 | As incurred | Before opening | Insurance companies | | Misc. Opening | $13,000 | $25,000 | As incurred | Before opening | Vendors | | Costs/Office | | | | | | | Supplies 16 | | | | | | | Security Deposits 17 | $0 | $15,000 | As incurred | As incurred | Utility companies; lessors | | Management Training | $0 | $4,000 | As incurred | Before opening | Us | | Program Fee 18 | | | | | | | Travel and Living | $4,600 | $6,900 | As incurred | Before opening | Airlines, | | Expenses during | | | | | hotels and | | Training 18 | | | | | restaurants | | On-Site Training | $0 | $17,000 | As incurred | Before opening | Us | | Fee 19 | | | | | | | Opening Inventory 20 | $11,000 | $14,000 | As incurred | Before opening | Vendors | | Additional Funds - 3 Months 21 | $15,000 | $54,000 | As incurred | As incurred | Us, employees, vendors, etc. | | Total Initial Investment 22, 24 | $593,575 | $1,143,500 | | | |

EXPLANATORY NOTES:

The above are estimates of a franchisee's total initial investment in one Shop. These charts do not include an estimate for the cost of opening or operating an SRU, which is an optional add-on that may be offered after you have operated your Shop. The charts should be read in conjunction with the following notes.

You should review this information, including the footnotes, carefully, conduct your own investigation and seek the help of qualified advisors before making any decision about an initial investment in a Shop.

None of these fees or payments are refundable unless otherwise noted below.

    1. Initial Franchise Fee. See Item 5. For Co-Branded Shops, the Initial Franchise Fee estimate includes both the Initial Franchise Fee paid to us ($35,500) and the initial franchise fee paid, as applicable, to Cinnabon under the Cinnabon® Franchise Agreement for the right to operate a Cinnabon® franchise ($30,500) or to Jamba under the Jamba® Franchise Agreement for the right to operate a Jamba® franchise ($35,500).
    1. Construction and Build Out Costs. This estimate includes fees paid to a general contractor you engage to build out the Shop to meet our Standards (and for a Co-Branded Shop, the standards of the Co-Branded Franchisor too). Leasehold improvements include but are not limited to HVAC, electrical, carpentry, floor covering, and painting. The cost of a general contractor will vary widely depending on the size and condition of the premises, whether or not there are any existing and comparable leasehold improvements in the premises, the extent and quality of improvements you desire over and above our minimum requirements, your landlord's cash contribution to the cost of the improvements, and the local costs of material and labor. In certain major metropolitan markets such as Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C., costs could be significantly higher than the estimates provided here due to local market rates for materials and labor.

For a Jamba Co-Branded Shop, the estimate is based on an endcap or free-standing location with a drive-thru. This estimate does not include leasehold improvements for new free-standing buildings with a drive-thru, as the costs for this format may vary significantly. For a Cinnabon Co-Branded Shop, the estimate is based on a mall or streetside location.

You may be able to negotiate tenant improvement allowances from your landlord. The estimate is presented net of estimated tenant improvement allowances. For the low estimate, we estimated a tenant improvement allowance of $2,500, which is approximately the average tenant improvement allowance that our franchisees have reported to us in recent years. For the high estimate, we assumed that a tenant improvement allowance was not available.

    1. Permitting. This estimate includes the cost of acquiring construction permits, including permit fees. Your costs will vary depending upon your Shop's location. In some markets, the costs of required permits may significantly exceed our estimates.
    1. Equipment Package. You must purchase or lease from an Approved Supplier certain equipment (like kitchen equipment) and machinery that complies with our Standards (and for a Co-Branded Shop, the standards of the Co-Branded Franchisor too). Your actual

  • costs will vary depending on a number of factors including, without limitation, building codes and health requirements of the state where your Shop is located.
    1. Millwork. You will incur expenses for millwork at the Shop, which may include the cost of purchasing cabinets and counters from Approved Suppliers and installing them in the Shop.
    1. Furniture. You must purchase from Approved Suppliers furniture that meets our Standards, such as tables, chairs, and office furniture.
    1. Menu Board, Graphics, and Interior Signage. This estimate includes the cost of purchasing a digital menu board and interior signage from Approved Suppliers. The cost will vary based on the size of your Shop. A digital menu board is required for a Full Shop. A static menu board is currently acceptable for a Concession Shop. Our requirements and the related costs are subject to change.
    1. Exterior Signage. You must purchase exterior signage from Approved Suppliers.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 44–54)

What This Means (2024 FDD)

According to Auntie Annes' 2024 Franchise Disclosure Document, the total estimated initial investment for a full shop ranges from $441,475 to $1,143,500. The cost includes expenses like permitting ($2,500 to $12,000), equipment ($60,000 to $195,000), millwork ($20,000 to $34,000), furniture ($0 to $12,000), menu boards and signage ($20,000 to $22,000), exterior signage ($12,500 to $56,000), computer systems ($7,400 to $27,400), small wares ($8,500 to $12,000), architect fees ($8,500 to $18,000), rent ($4,000 to $10,000), grand opening marketing ($5,000 to $15,000), legal and accounting fees ($7,000 to $12,000), insurance ($1,575 to $8,200), miscellaneous opening costs ($13,000 to $25,000), security deposits ($0 to $15,000), training fees ($0 to $4,000), travel and living expenses for training ($4,600 to $6,900), on-site training fees ($0 to $17,000), opening inventory ($11,000 to $14,000), and additional funds for the first three months of operation ($15,000 to $54,000).

For a Jamba co-branded shop, the total initial investment ranges from $149,625 to $624,800. This includes grand opening marketing ($2,500 to $7,500), legal and accounting fees ($5,000 to $10,000), insurance ($1,575 to $8,200), miscellaneous opening costs ($13,000 to $25,000), security deposits ($0 to $15,000), management training program fees ($0 to $2,500), travel and living expenses during training ($3,100 to $5,100), on-site training fees ($0 to $5,300), opening inventory ($3,300 to $4,000), and additional funds for the first three months ($15,000 to $54,000).

For a Cinnabon co-branded shop, the total initial investment ranges from $107,540 to $249,400. This includes legal and accounting fees ($5,000 to $10,000), insurance ($1,575 to $8,200), management training program fees ($0 to $2,500), travel and living expenses during training ($3,100 to $5,100), on-site training fees ($0 to $5,300), opening inventory ($3,300 to $4,000), and additional funds for the first three months ($15,000 to $28,000).

For a Small Shop, the total initial investment ranges from $154,285 to $330,460. This includes small wares ($1,050 to $4,650), grand opening marketing ($1,000 to $5,000), legal and accounting fees ($5,000 to $10,000), insurance ($1,575 to $8,200), management training program fees ($0 to $2,500), travel and living expenses during training ($3,100 to $5,100), on-site training fees ($0 to $5,300), opening inventory ($3,300 to $4,000), and additional funds for the first three months ($15,000 to $28,000).

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.
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