Under what condition is the Auntie Annes Relocation Extension Fee required?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
rity of violations, number of violations, and | On invoice | Payable if you fail to comply with any of the Standards, in addition to any other remedies that we are entitled to pursue. The fee may be charged repeatedly (as frequently as daily) if the non-compliance is ongoing. |
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| repetition of | |||
| violations | |||
| Failure to Comply with Standards or Law Fee | Up to a $5,000 fee plus our reasonable expenses connected with any inspection, examination, or analysis of products or your Shop | On invoice | Payable if our inspection shows the products have been adulterated in any way or that your Shop does not comply with applicable laws. |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, a Development Deadline Extension Fee of $2,500 is required per missed deadline. This fee is payable if a franchisee fails to meet the Site Approval Deadline, Construction Start Deadline, or Opening Deadline, as defined in Item 11 of the FDD.
This fee also applies if Auntie Annes grants the franchisee an extension to any of these deadlines. It is important to note that failing to open by the Opening Deadline or failing to cure a default of the Site Approval or Construction Start Deadlines may result in the termination of the Franchise Agreement.
For a prospective Auntie Annes franchisee, this means that adhering to the development deadlines is crucial to avoid incurring additional fees and potential termination of the franchise agreement. Careful planning and execution are necessary to meet these deadlines and maintain a good standing with the franchisor.