Auntie Anne’s is a chain of pretzel bakeries. Anne F. Beiler and her husband, Jonas founded this in 1988, in Lancaster, Pennsylvania. This company serves products such as complementary dips and pretzels. Beverages like Lemonade Mixers in 5 fruity flavors and signature lemonade are also served by the company. It has over 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, UAE, Taiwan South Korea, Indonesia and the UK. Its headquarters is in Pennsylvania.
The company has been franchising since 1991. Auntie Anne’s is renowned for its fresh-baked, hand-rolled soft pretzels. With an At-Home Baking Kit its pretzel products are available for home preparation. The franchised business offers pretzel dogs, lemonade, hand-rolled soft pretzels, Dutch Ice drink products and other beverage & food products that are all prepared with specified procedures and recipes.
Direct or indirect financing is not offered by the franchisor. And franchisor does not guarantee any lease, note or obligation. Initial training is provided to the franchisees by the franchisor.
Franchisees are required to send a minimum of 3 individuals for initial training as per Auntie Anne’s training rule. Successful completion of all phases of training programs is mandatory for these individuals. Prior to opening a franchise business it is required that the franchisee and initial store manager to attend and complete the training program successfully. Training includes 100 hrs of both In-Store and classroom training modules. It is mandatory for a franchisee to work in an existing Auntie Anne’s outlet for minimum of 40 hrs week.
For the franchised business, the term of agreement will expire 20 yrs from the date of opening a store. The then-current franchise agreement will be signed by the franchisee at each renewal.
The company has 1,100 units worldwide. In order to ensure the success of the franchisees, Auntie Anne’s introduced a corporate team that is committed to give support with the following:
- Legal Support
- Purchasing support
- Accounting support
- Register Support and Information Systems support
- Technology and Food Science support
- Communications and Public Relations support
- Creative Services and Marketing support
- Real Estate and Site Development support
- Store Operations and Business Consulting support
- Franchise Fee – $30,000
- Lease, Security Deposits and Utility – $4,000 – $7,000
- Leasehold Improvements, Fixtures and Furniture – $90,000 – $190,000
- Equipment – $31,500 – $34,500
- Business Permits and Licenses – $175 – $600
- Initial 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
- Royalty Fee – 7% of Gross Sales
- Marketing Fund and Advertising – 1% of Gross Sales
- Transfer Fee – $3,000 for each transfer
- Entity Transfer Fee – $1,000 for each transfer
- Sublease Fee – $200 monthly or as agreed by Parties
- Lease Renewal Fee – $2,000
- Lease Documentation Late Penalty Fee – $500
- Lost Company Manuals Fee – $700 per each missing manual
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