Auntie Anne’s is a chain of pretzel bakeries. Anne F. Beiler and her husband, Jonas, founded this in 1988, in Lancaster, Pennsylvania. This business serves items like complementary dips and pretzels. The company also serves drinks like Lemonade Mixers in 5 fruity flavors and signature lemonade. It has more than 300 franchisees with more than 1,100 locations in the US and in 22 other countries, including Canada, Greece, China, Mexico, Honduras, Ireland, Japan, Egypt, Hong Kong, Bahrain, Philippines, Singapore, Thailand, Saudi Arabia, Kuwait. , Malaysia, Venezuela, the United Arab Emirates, Taiwan, South Korea, Indonesia and the United Kingdom. Its headquarters are in Pennsylvania.
The company has been franchising since 1991. Auntie Anne’s is famous for its freshly baked, handmade pretzels. With a home baking kit, your pretzel products are available for home preparation. The franchise business offers pretzels, lemonade, hand-rolled soft pretzels, Dutch Ice beverage products, and other beverage and food products that are prepared using specific procedures and recipes.
The franchisor does not offer direct or indirect financing. And the franchisor does not guarantee any lease, note or obligation. The franchisor provides initial training to the franchisees.
Franchisees must send a minimum of 3 people for initial training per the Auntie Anne training rule. Successful completion of all phases of the training programs is mandatory for these individuals. Before opening a franchise business, the franchisee and the initial store manager are required to attend and successfully complete the training program. Training includes 100 hours of both in-store and classroom training modules. A franchisee is required to work at an existing Auntie Anne outlet for a minimum of 40 hours per week.
For the franchise business, the term of the agreement will expire 20 years from the date of opening a store. The franchise agreement in force at that time will be signed by the franchisee at each renewal.
The company has 1,100 units around the world. To ensure the success of franchisees, Auntie Anne’s introduced a corporate team that is committed to supporting the following:
- legal support
- shopping support
- accounting support
- Sign Up Support and Information Systems Support
- Food Science and Technology Support
- Support in communications and public relations
- Creative services and marketing support
- Real Estate Support and Site Development
- Store operations and business consulting support
Deductible cost:
- Deductible Fee – $30,000
- Lease, Security Deposits and Utilities – $4,000 – $7,000
- Leasehold improvements, fixtures and furnishings – $90,000 – $190,000
- Equipment – $31,500 – $34,500
- Business Permits and Licenses – $175 – $600
- Beginning inventory – $3,300 – $4,000 • Insurance – $400 – $2,500
- Training – $1,000 – $7,500
- Grand Opening Advertising – $500 – $10,000
- Signage – $4,000 – $12,000
- Point of Sale Equipment – $8,000 – $15,000
- Office Equipment and Supplies – $5,000 – $10,000
- Professional Fees – $5,300 – $10,000
- Additional Funds (3 months) – $15,000 – $51,000
TOTAL – $197,875 – $384,100
Ongoing rates:
- Royalty Fee – 7% of gross sales
- Marketing and Advertising Fund – 1% of Gross Sales
- Transfer fee – $3,000 for each transfer
- Entity transfer fee – $1,000 for each transfer
- Sublet Fee: $200 per month or as agreed by the parties
- Lease Renewal Fee – $2,000
- Lease Documentation Late Penalty Fee – $500
- Lost Company Manuals Fee: $700 for each lost manual
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