Auntie Anne's Pretzels Franchise Costs, Fees & FDD

Year Business Began: 1990

Franchising Since: 1991

Headquarters: Atlanta, Georgia

Estimated Total Number of Units: 2,020

Franchise Description: Auntie Anne’s Franchisor SPV LLC is the franchisor. The franchisor is an indirect, wholly owned subsidiary of GoTo Foods LLC (formerly Focus Brands LLC). Auntie Anne’s retail shops offer fresh baked soft pretzels, lemonade and related foods and beverages. The franchisor offers franchises in the following shop formats:

• Full 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.
• Co-Branded Shop – a full shop where franchisee’s produce and sell a range of Auntie Anne’s products in conjunction with those products authorized to be sold under another brand’s franchise system such as Cinnabon or Jamba. To operate a co-branded shop, franchisees must also purchase a franchise as well as sign a franchise agreement and co-branded schedule from the other brand.

Training Overview: All or certain portions of the Management Training Program may, in the franchisor’s discretion, be conducted online or in person at (i) the franchisor’s corporate headquarters in Atlanta, Georgia, (ii) a shop that it designates that has been certified as an authorized training facility, and/or (iii) other locations authorized by the franchisor. Training currently consists of 25 hours of classroom training and 60 hours of on-the-job training for all shops other than co-branded shops. All individuals attending the management training program must be at least 18 years old and must have management experience as a restaurant owner and/or operator. The required trainees must successfully complete the management training program at least one week prior to the scheduled opening date of the shop. For the first two full shops (including full shops owned by affiliates), the initial franchise fee includes the cost of the franchisor providing one or more representatives to provide on-site opening training and assistance at the full shop to facilitate the opening of such full shop. The franchisor may, from time to time, conduct conferences, conventions, programs, webinars, teleconferences, or training sessions on any matters related to the system.

Territory Granted: The Franchise Agreement licenses the franchisee to manufacture and sell Auntie Anne’s products at retail only from a specific Auntie Anne's Shop location that the franchisor has accepted. The franchisor does not grant the franchisee any exclusive territory or other territorial rights under these agreements other than the right to sell Auntie Anne's products at retail from the shop.

Obligations and Restrictions: The franchisor does not recommend an investment in a shop for investors interested in an absentee management business. Franchisees must appoint a primary contact who will be responsible for, and have decision-making authority regarding, the shop and its operation. Franchisees must also have at least one certified manager that is dedicated to the shop. Franchisees may offer in the shop to customers only the approved products that the franchisor has approved in writing. Franchisees may not produce or offer any products (i) that the franchisor does not authorize franchisees to produce or sell or (ii) that the franchisor directs franchisees not to produce or sell.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years. If franchisees operate a concession shop, the term will be 10 years. One 20-year renewal term is available if the franchisee complies with renewal requirements. If franchisees operate a concession shop, there is no option for a renewal term.

Financial Assistance: The franchisor does not offer financing for trade fixtures, opening inventory, or any other purpose. The franchisor may refer franchisees to leasing or financing companies not affiliated with it. Currently, the franchisor does not guarantee a franchisee’s note, lease or obligation, for any lender, or any other person or entity. The franchisor may engage an advisor who will provide consulting services to franchisees to assist them with securing financing, and the franchisor may pay the advisor for this assistance to franchisees. The franchisor will not be responsible for the consultant’s provision of services to franchisees and if franchisees choose to use the consultant, they must sign the consultant’s form of agreement.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$35,500	$35,500
Construction and Build Out Costs	$27,000	$260,000
Permitting	$450	$8,300
Equipment Package	$25,000	$65,000
Millwork	$5,000	$28,000
Furniture	$0	$2,500
Menu Board, Graphics, and Interior Signage	$250	$23,000
Exterior Signage	$3,000	$8,300
Computer System	$10,500	$32,000
Smallwares	$1,000	$8,000
Architect/Engineer	$2,000	$20,000
Rent	$2,000	$10,000
Grand Opening Marketing	$3,000	$7,500
Legal and Accounting Fees	$5,000	$10,000
Insurance	$1,575	$8,200
Misc. Opening Costs/Office Supplies	$13,000	$25,000
Security Deposits	$0	$15,000
Management Training Program Fee	$0	$3,000
Travel and Living Expenses During Training	$3,600	$5,700
On-Site Training Fee	$0	$5,300
Opening Inventory	$3,300	$4,000
Additional Funds (3 months)	$15,000	$54,000
ESTIMATED TOTAL* (excluding real estate)	$156,175	$638,300

*The estimated initial investment range covers the full shop location type. Please see the FDD for details on the concession shop (food truck or trailer) or co-branded shop initial investment range.

Other Fees

Type of Fee	Amount
Royalty Fee	Currently, 7% of net sales, which the franchisor may increase in its sole discretion to 8% of net sales, for all shops except for co-branded shops.
Advertising Contribution	Rates vary by location of shop.
Advertising Cooperative Contribution	An amount set by the franchisee’s advertising cooperative.
Local Marketing Obligation	Each calendar quarter, franchisees must spend not less than 1% of net sales on local market advertising.
Promotions and Advertising Materials	Up to 110% of the franchisor’s or its affiliates’ actual costs and expenses related to the goods franchisees purchase from the franchisor or the affiliate.
Insufficient Funds Fee	The franchisor’s out-of-pocket costs and an administrative fee.
Interest	The lesser of 1.5% per month or the maximum legal interest rate.
Late Reporting Fee	The then-current fee. Currently, $50 per day.
Taxes and Other Payments	The franchisor’s or its affiliates’ costs and expenses.
Subsequent Trainee Management Training Fee	Currently, $250 per trainee per day.
On-Site Training and Assistance	A reasonable fee, currently, $500 per day per trainer plus trainers' travel and living expenses.
Additional Support/Consulting Fee	A reasonable fee, currently, $500 per day, plus travel and living expenses.
Conference/Program Fee	A reasonable fee, which will vary by program.
Training Cancellation Fee	The fees for the cancelled program and the franchisor’s out-of-pocket costs.
Learning Management System License Fee	The then-current fee. Currently, $170 per year.
Sublease Administration Fee	$200 monthly.
Lease Renewal/Extension Review Fee	The then-current fee. Currently, ranges from $500 for a lease term of two years or less to $2,000 for a term of five years or more.
Lease Documentation Fee	$500 per month (or partial month) until delivered.
Satellite/Specialty Retail Unit (SRU) Fee	(i) $500 set-up fee; (ii) $1,000 security deposit; (iii) shipping expenses (est. to be $1,500 to $5,000); (iv) ongoing monthly rental fee equal to a flat dollar amount or a percentage of net sales (currently, 8%), up to a maximum dollar amount (currently, $1,600 to $2,750).
SRU Training Fees	$750
SRU Lease Termination Fees	The franchisor’s actual expenses.
Remote Location Baking License Fee	$3,000 per year.
Relocation Fee	10% of the then-current initial franchise fee.
Relocation Extension Fee	$1,500 per year that the term is extended.
Refresh/Remodel Site Survey and Design Fee	The then-current fee.
Transfer Fee	50% of the then-current initial franchise fee if it is a control transfer; if it is a transfer to a related party or that is not a control transfer, 10% of the then-current initial franchise fee.
Renewal Fee	20% of the then-current initial franchise fee.
Computer Systems Fee	A reasonable fee, which will vary based on the services provided.
POS System License and Lease Fees	Currently, $159 to $397 per month if franchisees purchase the POS system under the CapEx program and $216 to $442 per month if they lease the POS system under the HaaS program.
POS System Support Fee	Currently, estimated to be between $70 and $250 per month.
POS System Administration Fee	Currently, between $1,500 to $2,000.
Non-GoTo Foods Portfolio POS Menu Setup	A reasonable fee, currently estimated to be $500 per day.
Back Office and Polling Software Fee	Currently, estimated to be between $100 and $200 per month.
Credit Card Fees	Transaction fees are estimated to be from 2.5% to 5.0% of transaction amounts. Other fees may apply depending on the vendor used for credit card processing.
Information Security and Compliance Fees	Currently, not charged.
Gift Card and Loyalty Program Fees	Amount of administrative fees.
Loyalty App Fee	Currently, $51 per month.
Online Ordering Fee	Currently, $54 per month, plus a per transaction fee (estimated to be less than 0.04% per transaction) and additional charges based on services subscribed to.
Ordering Support Fee	The then current fee, which will vary based on the services provided.
Technology Fee	The then-current fee. Currently, not collected.
Purchasing Program Fee	Reasonable membership fees assessed by the purchasing program.
Supply Chain Fee	Currently, $0.31 to $0.48 per case purchased through certain appointed distributors.
Insurance	Amount of unpaid premiums and up to 110% of the franchisor’s actual costs and expenses.
Guest Relations Fee	Currently, $30 for each guest complaint or other contact request that the franchisee does not timely respond to or for each excessive guest complaint.
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.
Failure to Comply with Standards or Law Fee	Up to a $5,000 fee plus the franchisor’s reasonable expenses connected with any inspection, examination, or analysis of products or the franchisee’s shop.
Development Deadline Extension Fee	$2,500 per missed deadline.
Repeated Inspection Fee	$500 non-compliance fee, plus any costs the franchisor is charged by third-party inspectors or otherwise incur.
Audit	Cost of audit.
Reimbursement of Services After Default	All costs and expenses that the franchisor reasonably incurs.
Liquidated Damages	The average monthly amount of Royalty that the franchisee owed Auntie Anne’s during the past 36 months times the lesser of remainder of term of Franchise Agreement or 36 months.
Appraiser’s Fee	50% of appraiser’s fee.
Indemnification of Auntie Anne’s	The franchisor’s cost.
Attorneys’ Fees	The franchisor’s cost.
Reinstatement Fee	10% of the amount of the then-current initial franchise fee, plus royalty fees that would have been payable in period between termination and reinstatement.
De-identification Fee	The franchisor’s or its affiliates actual costs, plus interest and an administrative fee equal to 15% of its actual costs.

The above information has been compiled from the FDD of Auntie Anne's Pretzels. Year of FDD: 2025.
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