What is the training fee if Auntie Annes Required Trainees are trained in separate sessions?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
red Trainees.
Your trainees may not attend the Management Training Program until (a) you have provided us with your fully signed Lease (if required) in a form that we have approved, (b) your Shop is under
construction, (c) you have provided us with evidence of the insurance that is required under your Franchise Agreement, and (d) it is within six weeks of the scheduled opening date of your Shop.
There is no charge for the cost of the Management Training Program for your Required Trainees for your first two Shops (including Shops owned by your affiliates). If we provide the Management Training Program to you for your third or subsequent Shops (including Shops operated by your affiliates), you must pay us a fee of $2,500 ($4,000 for Co-Branded Shops) for the Management Training Program. You must pay us a reasonable training fee that we designate
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 61–77)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, if the Required Trainees are trained in separate sessions, the franchisee must pay a training fee. This fee is currently set at $250 per trainee per day. This fee covers the cost of providing the Management Training Program to the Required Trainees when they are not trained in a group setting.
This stipulation has significant implications for prospective franchisees. If a franchisee cannot coordinate the training schedules of their Required Trainees, they will incur additional costs. These costs can accumulate quickly, especially if multiple trainees require separate training sessions or if the training program extends over several days. Franchisees should, therefore, plan carefully to ensure that their trainees can attend the Management Training Program together to avoid these extra expenses.
It's also important to note that this fee is subject to change, as the FDD specifies that the franchisee must pay the "then-current" daily training fee. This means that Auntie Annes has the right to increase this fee at any time. Therefore, prospective franchisees should factor in the potential for increased training costs when budgeting for their franchise. Furthermore, franchisees are responsible for all wages, travel, and living expenses for their trainees during the training program, adding to the overall cost of training.