Franchising

Auntie Anne’s Franchise Review

Auntie Anne’s is a chain that includes pretzel bakeries. This was established by Anne F. Beiler (and her husband Jonas) in Lancaster, Pennsylvania in 1988. Products such as pretzels and complementary dips are available from this company. This company also serves beverages like Lemonade Mixers with 5 different flavors and their signature lemonade. There are over 300 franchisees in the US, with more than 1,100 locations. Its headquarters can be found in Pennsylvania.

Since 1991, the company has been franchising. Auntie Anne’s is known for its hand-rolled, fresh-baked soft pretzels. The At-Home Baking Kit makes it easy to make pretzel products at home. Franchised businesses offer pretzel dogs, lemonade and hand-rolled soft pretzels.

The franchisor cannot offer either direct or indirect financing. A franchisor is not able to guarantee any type of lease, note, obligation. The franchisor provides initial training to franchisees.

As per Auntie Anne’s guidelines, franchisees must send at least three people to their initial training. These individuals must complete all phases of the training program successfully. Before opening a franchise, it is mandatory that both the initial store manager and the franchisee attend and successfully complete the training program. Training includes 100 hours of In-Store and Classroom training modules. A franchisee must work at least 40 hours per week in an Auntie Anne’s store.

The franchise agreement expires 20 years after the date that a store is opened. Each renewal will see the franchisee sign the current franchise agreement.

The company currently has over 1,100 units around the globe. Auntie Anne’s has created a corporate team to support franchisees.

  • Legal Support
  • Support for purchasing
  • Accounting support
  • Register Support and Information Systems Support
  • Support for Technology and Food Science
  • Communications and Public Relations Support
  • Marketing Support and Creative Services
  • Real Estate and Site Development Assistance
  • Support for Store Operations and Business Consulting

Franchise Cost:

  • Franchise Fee – $30,000
  • Lease, Utility, Security Deposits and Lease – $4,000 – $7,000
  • Leasehold improvements, furniture, fixtures and fixes – $90,000.00 – $190,000.000
  • Equipment – $31,500-34,500
  • Business Permits & Licenses – $175 to $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 to $15,000
  • Office Supplies and Equipment – $5,000 to $10,000
  • Professional Fees – $5300 – 10,000
  • Additional Funds (3 Months), – $15,000 – $51,000

TOTAL – $197 875 – 384,100

There are ongoing fees:

  • Royalty Fee: 7% of gross sales
  • Marketing Fund and Advertising – 1 % of Gross Sales
  • Transfer Fee: $3,000 per transfer
  • Entity Transfer Fee – $1,000 per transfer
  • Sublease Fee: $200 per month or as agreed between Parties
  • Lease Renewal Fee $2,000
  • Lease Documentation Late Penalty fee – 500
  • Lost Company Manuals Fee: $700 for each manual that is missing

It is crucial that you identify ways to reduce overhead or minimize risk when starting a business, especially in today’s market. Risk is part of any business. However, it is crucial to understand the investment required, startup costs, and return on investment.

Most people do not know that 80% of franchise projects fail within the first 2-5 years, leaving large debts that last for many years.

I believe the best way, and the most efficient way, to reduce overhead and startup costs and investment costs is by taking advantage of the new age and starting a business in your own home. Online markets are becoming millionaires every day. Learn more about the exciting opportunities tied to a business model that begins profitable by visiting: http://whatsbetterthanafranchise.com.

molw.net

We are a team of professionals with each having two decades of experience in start-ups, sales, marketing, finance, HR, large scale project and profit centre management and running mature cross functional operations. At Molw.net we are big believers that knowledge transfer is critical to our industry’s evolution. We love to share our experiences and learnings through our online resources.

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