Do you want to open a food shop business by buying Aunty Anne’s franchise? If YES, here is how much it cost to open Aunty Anne’s franchise successfully. If you are looking towards opening an Aunty Anne’s Franchise, it will be nice for you to have a of what the company represents before enquiring about the total cost of opening the franchise in your location.
Auntie Anne’s Franchisor SPV LLC started operations in 1990 and they began selling franchise in 1991. They have their corporate headquarters at 48-50 W. Chestnut St., #200 Lancaster, PA 17603, USA and presently they have an estimated 1,905 franchise units in operation.
Auntie Anne’s Franchisor SPV LLC is the franchisor. Auntie Anne’s retail shops offer fresh baked soft pretzels, lemonade and related foods and beverages. The franchisor offers franchises for a single Auntie Anne’s Shop and an Auntie Anne’s Concession Shop, as follows:
Types of Franchises Offered By Aunty Anne’s
- Shop – where the franchisee produces and sells a full range of Auntie Anne’s products, which may include alcoholic beverages.
- Concession Shop – a temporary stand at a farmers’ market, concession trailer, or food truck where a franchisee produces and sells a range of Auntie Anne’s products.
Please note that in certain circumstances and subject to availability, the franchisor also grants to qualified franchisees the right to lease and operate a Satellite Retail Unit as an additional selling location where an existing shop is located.
In certain circumstances and subject to availability, the franchisor also grants to qualified franchisees the right to operate a Pretzel Bike Unit as an additional selling unit within a one-mile radius of the location of such franchisee’s existing shop.
Financial Investment Required to Open Aunty Anne’s Franchise
Auntie Anne’s Franchisor SPV LLC has the franchise fee of up to $30,000, with total initial investment range of $199,475 to $385,100. Here are areas where you are expected to spend money and the cost associated with it;
1. Initial Franchise Fee: $20,000 to $30,000
If you sign a Franchise Agreement for an Auntie Anne’s Shop, you pay an initial franchise fee of $30,000 when you sign your Franchise Agreement (the “Initial Franchise Fee”). For the second and any additional franchise purchased by you, a discount of 10percent of the then-current Initial Franchise Fee will be granted.
Auntie Anne’s currently has a second Shop incentive program with a reduced Initial Franchise Fee of $5,000 when you open a second permanent baking inline or kiosk Shop in the same location or venue. This second Shop incentive program does not apply to Satellite Retail Units (SRUs) or Pretzel Bike Units (PBUs).
Auntie Anne’s reserves the right to extend or withdraw any of these programs at any time. Auntie Anne’s participates in the International Franchise Association’s VetFran program. For qualifying veterans or members of the Armed Forces, the Initial Franchise Fee is $20,000.
2. Satellite Retail Unit (SRU) and Concession Trailer/Truck: Varies
Please note that if you qualify to operate an SRU, you will be required to execute an SRU Addendum and SRU Lease Agreement. Upon execution of the SRU Lease Agreement, you will be required to pay the following:
- A $600 non-refundable set-up fee, the proceeds of which are, in part, used to pay or defray the expenses and costs incurred by Auntie Anne’s to set up the SRU
- A Security deposit in the amount of $1,000
- Two months’ advance rent at the maximum rent for the unit (currently, $1,600 to $2,500, depending on the type of SRU).
3. Royalty Fee: 7percent of Net Sales
Due Date: Payable on or before Friday of each week on the Net Sales for the previous week (or on any other basis stated in the Manuals or in Auntie Anne’s written notice to you).
4. Advertising Contribution
Unless otherwise agreed, 1percent of Net Sales and the Due Date for this fee is Same as Royalty Fee.
5. Advertising Cooperative Contribution
An amount set by your Advertising Cooperative and the Due Date for this fee is Same as Royalty.
6. Local Marketing Obligation
Each calendar quarter, you must spend not less than 1percent of Net Sales on local market advertising and the Due Date is each calendar quarter.
Costs to purchase, lease, and install all materials necessary for promotional campaigns, including counter cards, posters, banners, signs, photographs, giveaway items, loyalty cards, and gift cards. Auntie Anne’s may charge you its costs, plus a reasonable administrative fee.
Due Date: As incurred.
8. EFT Non-sufficient Funds Fee
Auntie Anne’s out-of-pocket costs and an administrative fee and the Due Date for this is the On invoice.
9. Interest: 1.5percent per month
Or maximum legal interest rate and the Due Date for this is On invoice.
10. Late Fee for Reports, Financial Statements, or Tax Returns
$50 per week for late financial statements; $100 per day for other reports and tax returns and the Due Date for this is On invoice.
11. Taxes: Auntie Anne’s cost
Due Date is On invoice. Please note that you must pay Auntie Anne’s all taxes (except its income taxes) it pays for products or services it furnishes to you, or on its collection of the Initial Franchise Fee, Royalty, and Advertising Contribution from you.
- Subsequent Trainee Initial Training Fee: Currently, up to $500 per trainee and the Due Date for this fee is before attending training.
- On-Site Training and Assistance: A reasonable fee; currently, $250 per day per trainer, plus trainers’ travel and living expenses. The Due Date for this fee is on invoice.
- Additional Support Consulting Fee: A reasonable fee; currently, $500 per day, plus travel and living expenses and the Due Date for this is on invoice.
- Conference/ Program Fee: A reasonable fee, which will vary by program and the Due Date for this fee is as incurred.
- Training Cancellation Fee: Auntie Anne’s out-of-pocket costs and the Due Date for this fee is on invoice.
- Electronic Learning Management System: Amount of fees. Auntie Anne’s estimates the cost will be $40 to $500 annually. The Due Date for this is As incurred.
- Carvel Product Platform Training Fee: $750 and the Due Date for this is on invoice.
- Rent: Will vary based on location and other factors; Auntie Anne’s estimates rent will range from $4,500 to $20,000 per month. The Due Date for this fee is First day of every month.
- Relocation Fee: 10 percent of the then-current Initial Franchise Fee and the Due Date for this is Before Auntie Anne’s signs relocation Franchise Agreement.
- Lease Renewal Extension Assistance Fee: $2,000 and the Due Date is Due and payable upon the execution of the lease renewal/extension by the landlord.
- Lease Documentation Fee: $500 per month (or partial month) until delivered and the Due Date for this fee is As incurred.
- SRU Fee: Monthly rental fee, which may be calculated as (i) a flat dollar amount or (ii) a percentage of Net Sales derived from the SRU (currently, 8percent), up to a maximum dollar amount (currently, $1,600 to $2,500, depending on the type of SRU).
The Due Date is stated on the invoice.
- Remote Location Baking License Fee: $3,000 and the Due Date for this fee is As incurred.
Please note that this annual fee applies when baking is done at a location remote from the franchised location.
- Regional Advisory Council Dues: $400 a year for each franchisee entity (two representatives permitted); $75 for each additional participant; $200 per year for each single-unit franchisee entity that operates a seasonal or limited-day Shop (e.g., shore points or farmers markets)
The Due Date for this fee is By March 30th of each year.
- Transfer Fee: 50percent of the then-current Initial Franchise Fee; if it is a transfer to a related party, 10percent of the then-current Initial Franchise Fee. The Due Date for this fee is At transfer closing.
- Renewal Fee: 50percent of the then-current Initial Franchise Fee for a 20-year renewal; $2,000 for a 1-year renewal term.
The Due Date: 30 days prior to expiration of 20-year term; before Auntie Anne’s signs the renewal Franchise Agreement.
- Computer Systems Fee: A reasonable fee, which will vary based on the services provided and the Due Date for this fee is as needed.
- POS System Support Fee: Currently, estimated to be between $50 and $250 per month and the Due Date for this fee is as incurred.
- Back Office and Polling Software Fee: Currently, estimated to be between $100 and $200 per month. The Due Date for this fee is as incurred.
- Credit Card Fees: Equipment costs and set-up fees estimated to be up to $1,000 per terminal. Transaction fees estimated to be from 2.5percent to 5.0percent of transaction amounts. Other fees may apply depending on the vendor used for credit card processing.
The Due Date for this fee is as incurred.
- Information Security and Compliance Fees: A reasonable fee, which will vary based on the costs that Auntie Anne’s incurs and the Due Date for this fee is as incurred.
- Gift Card and Loyalty Program Fees: Amount of fees and the Due Date is as incurred.
- Purchasing Program Fee: Reasonable membership fees assessed by the Purchasing Program and the Due Date is as incurred.
- Supply Chain Fee: Currently, $0.17 to $0.27 per case purchased through certain Appointed Distributors and the Due Date of this fee is as incurred.
- Ordering Support Fee: A reasonable fee, which will vary based on the services provided and the Due Date for this fee is as incurred.
- Development Deadline Extension Fee: $2,500 per missed deadline and the Due Date for this fee is on invoice.
- Non-Compliance Fee: Currently, $25 to $500 for a single violation, but may vary based on the severity of violations, number of violations, and repetition of violations and the Due Date for this fee is on invoice.
- Failure to Comply With Standards or Law Fee: Up to a $5,000 fee, plus Auntie Anne’s reasonable expenses connected with any inspection, examination, or analysis of products and the Due Date for this fee is On invoice.
- Repeated Inspection Fee: Cost of inspection and the Due Date for this fee is as on invoice.
- Audit: Cost of audit and the Due Date for this fee is on invoice.
Please note that if Auntie Anne’s audits you and finds that you understated Net Sales by 2percent or more, you must reimburse it all reasonable expenses connected to the audit, review, or examination (including any reasonable accounting and attorneys’ fees). Auntie Anne’s estimates that the typical audit costs would be approximately $1,000 to $4,000.
- Liquidated Damages: The average monthly amount of Royalty that you owed Auntie Anne’s during the past 36 months, times the lesser of the remainder of term of the Franchise Agreement or 36 months
The Due Date for this fee is within 30 days of termination of your Franchise Agreement.
- Appraiser’s Fee: 60percent of appraiser’s fee and the Due Date for this fee is on invoice.
Please note that you must pay this fee only if Auntie Anne’s elects to purchase your assets on termination or expiration of the Franchise Agreement and Auntie Anne’s cannot agree with you on the purchase price.
- Indemnification of Auntie Anne’s: Auntie Anne’s cost and the Due Date for this fee is on invoice.
The Due Date for this fee is as you indemnify Auntie Anne’s from certain losses and expenses under the Franchise Agreement.
- Attorneys’ Fees: Auntie Anne’s cost and the Due Date for this fee is on invoice.
Please note that if Auntie Anne’s becomes a party to a proceeding on an Agreement between it and you, and it wins, or if it becomes a party to litigation or insolvency proceedings for your franchise, then you must pay its reasonable attorneys’ fees and court costs.
- Reinstatement Fee: 10percent of the amount of the then-current Initial Franchise Fee, plus Royalty Fees that would have been payable in period between termination and reinstatement and the Due Date for this fee is Before reinstatement.
Please note that if Auntie Anne’s terminates your Franchise Agreement due to a health and safety default, you cure the default and want to be reinstated, and it agrees to reinstate your Franchise Agreement, you must pay it a reinstatement fee.
- De-identification Fee: Auntie Anne’s actual costs, plus interest, and an administrative fee equal to 15percent of its actual costs and the Due Date for this fee is on invoice.
Please note that this is Payable if Auntie Anne’s terminates the Franchise Agreement, you fail to de-identify the Shop, and it makes the required changes on your behalf.
To successfully open an Auntie Anne’s franchise you would need an Initial investment of $199,475 – $385,100, Net-worth Requirement of $400,000 and Liquid Cash Requirement of $120,000. Plus, Ongoing fee (Initial Franchise Fee) of $30,000, Ongoing Royalty Fee of 7percent and Ad Royalty Fee of 1percent.