In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for an Auntie Anne’s franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for an Auntie Anne’s franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Auntie Anne’s outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Auntie Anne’s franchise opportunity

Section V – Presentation and analysis of Auntie Anne’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• fiscal year 2023 average, median, lowest, and highest net sales, by quartile, for the 502 Auntie Anne’s enclosed mall franchises that were eligible franchises in fiscal year 2023 (an “eligible franchise” is a franchise that reported sales in all 53 weeks of fiscal year 2023)

• fiscal year 2023 average, median, lowest, and highest net sales, by quartile, for the 97 Auntie Anne’s outlet center franchises that were eligible franchises in fiscal year 2023

• fiscal year 2023 average, median, lowest, and highest net sales, by quartile, for the 36 Auntie Anne’s airport franchises that were eligible franchises in fiscal year 2023

• fiscal year 2023 average, median, lowest, and highest net sales, by quartile, for the 59 Auntie Anne’s-Cinnabon co-branded franchises that were eligible franchises in fiscal year 2023

Section VI – Key ratios, comparables, computations, and analyses for the Auntie Anne’s franchise opportunity (exclusive content for Platinum subscribers)

Section I – Auntie Anne’s Franchise Costs

• Initial Franchise Fee:  $35,500
• Construction and Build Out Costs:  $27,000 to $265,000
• Permitting:  $2,000 to $4,000
• Equipment Package:  $21,000 to $64,500
• Millwork:  $5,000 to $28,000
• Furniture:  $0 to $2,500
• Menu Board, Graphics, and Interior Signage:  $250 to $23,000
• Exterior Signage:  $3,000 to $8,300
• Computer System:  $7,400 to $27,400
• Smallwares:  $1,000 to $7,000
• Architect/Engineer:  $2,000 to $13,000
• Rent:  $2,000 to $10,000
• Grand Opening Marketing:  $2,500 to $7,500
• Legal and Accounting Fees:  $5,000 to $10,000
• Insurance:  $1,575 to $8,200
• Miscellaneous Opening Costs/Office Supplies:  $13,000 to $25,000
• Security Deposits:  $0 to $15,000
• Management Training Program Fee:  $0 to $2,500
• Travel and Living Expenses During Training:  $3,100 to $5,100
• On-Site Training Fee:  $0 to $5,300
• Opening Inventory:  $3,300 to $4,000
• Additional Funds for 3 Months:  $15,000 to $54,000
• Total Estimated Auntie Anne’s Franchise Costs:  $149,625 to $624,800

Section II – Auntie Anne’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $10,500 to $71,000
• Royalty Fee:  currently, 7% of Net Sales, which Auntie Anne’s may increase in its sole discretion to 8% of Net Sales
• Advertising Contribution:  Shops in Other Locations: currently, 1.5% of Net Sales; Shops in Streetside Locations: currently, 3% of Net Sales
• Advertising Cooperative Contribution:  an amount set by your Advertising Cooperative
• Local Marketing Obligation:  currently, each calendar quarter, you must spend not less than 1% of Net Sales on local market advertising

Section III – Number of Franchised and Company-Owned Auntie Anne’s Outlets

Franchised

2021

• Outlets at the Start of the Year:  1,140
• Outlets at the End of the Year:  1,126
• Net Change:  -14

2022

• Outlets at the Start of the Year:  1,126
• Outlets at the End of the Year:  1,135
• Net Change:  +9

2023

• Outlets at the Start of the Year:  1,135
• Outlets at the End of the Year:  1,156
• Net Change:  +21

Company-Owned

2021

• Outlets at the Start of the Year:  12
• Outlets at the End of the Year:  12
• Net Change:  0

2022

• Outlets at the Start of the Year:  12
• Outlets at the End of the Year:  11
• Net Change:  +1

2023

• Outlets at the Start of the Year:  11
• Outlets at the End of the Year:  11
• Net Change:  0

Section IV – News Updates on the Auntie Anne’s Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Auntie Anne’s Franchise (Item 19, 2024 FDD)

• This Item 19 presents information about the financial performance during Fiscal Year 2023 (the fiscal year ended December 31, 2023) of certain Enclosed Mall Franchises, Outlet Center Franchises, Airport Franchises, and Cinnabon Co-Branded Franchises that were eligible franchises in Fiscal Year 2023.

• An “Enclosed Mall Franchise” is a franchised Full Shop that is located in an enclosed mall.

• An “Outlet Center Franchise” is a franchised Full Shop that is located in an outlet center.

• An “Airport Franchise” is a franchised Full Shop that is located in an airport.

• A “Cinnabon Co-Branded Franchise” is a franchised Cinnabon Co-Branded Shop.

• An “eligible franchise” is a franchise that reported sales in all 53 weeks of Fiscal Year 2023.

• This Item 19 does not include data related to:

• (i) franchised Full Shops (other than the Cinnabon Co-Branded Franchises represented in Part 4) that are located anywhere other than in an enclosed mall, outlet center, or airport (such as amusement parks, big box stores, casinos, entertainment venues, farmer’s markets, military bases, lifestyle centers, power centers, strip malls, co-branded Subways, street locations, train stations, transportation centers, travel plazas, truck stops, universities, and Walmarts);
• (ii) Concession Shops;
• (iii) Co-Branded Franchises (other than the Cinnabon Co-Branded Franchises represented in Part 4), including for purposes of this Item 19 only Shops that are co-branded with brands other than Cinnabon or Jamba;
• (iv) affiliate-owned Shops; and
• (v) Full Shops that were not eligible franchises in Fiscal Year 2023.

• The financial performance and operations of these excluded Shops can vary significantly from the performance and operations of the Shops represented in this Item 19.

Part 1 – Average Net Sales by Quartile – Enclosed Mall Franchises for Fiscal Year 2023

Top Quartile

• Average Net Sales:  $1,208,557
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  47/126 (37%)
• Median Net Sales:  $1,156,989
• Lowest Net Sales:  $952,295
• Highest Net Sales:  $3,035,447

2nd Quartile

• Average Net Sales:  $826,828
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  58/125 (46%)
• Median Net Sales:  $812,723
• Lowest Net Sales:  $725,540
• Highest Net Sales:  $951,770

3rd Quartile

• Average Net Sales:  $641,025
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  60/125 (48%)
• Median Net Sales:  $638,511
• Lowest Net Sales:  $555,793
• Highest Net Sales:  $725,497

Bottom Quartile

• Average Net Sales:  $398,517
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  73/126 (58%)
• Median Net Sales:  $436,413
• Lowest Net Sales:  $17,783
• Highest Net Sales:  $550,438

Total

• Average Net Sales:  $768,870
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  224/502 (45%)
• Median Net Sales:  $725,519
• Lowest Net Sales:  $17,783
• Highest Net Sales:  $3,035,447

• As of December 31, 2023, there were 530 Enclosed Mall Franchises. Of those 530 locations, 502 (94.7%) Enclosed Mall Franchises are represented in this table.

• This table does not include:

• (i) 11 Enclosed Mall Franchises that are Co-Branded Franchises,
• (ii) eight Enclosed Mall Franchises that did not report sales in all 53 weeks of Fiscal Year 2023, and
• (iii) nine Enclosed Mall Franchises that opened in Fiscal Year 2023.

• This table also does not include 14 Enclosed Mall Franchises that permanently closed during Fiscal Year 2023, all of which had been open for at least 12 months prior to closing.

• No Enclosed Mall Franchises were reacquired by Auntie Anne’s in Fiscal Year 2023.

Part 2 – Average Net Sales by Quartile – Outlet Center Franchises for Fiscal Year 2023

Top Quartile

• Average Net Sales:  $1,357,657
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  8/25 (32%)
• Median Net Sales:  $1,230,504
• Lowest Net Sales:  $1,081,941
• Highest Net Sales:  $2,604,149

2nd Quartile

• Average Net Sales:  $958,703
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  9/24 (38%)
• Median Net Sales:  $953,431
• Lowest Net Sales:  $863,896
• Highest Net Sales:  $1,073,685

3rd Quartile

• Average Net Sales:  $779,139
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  12/24 (50%)
• Median Net Sales:  $787,132
• Lowest Net Sales:  $694,750
• Highest Net Sales:  $858,188

Bottom Quartile

• Average Net Sales:  $538,818
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  14/24 (58%)
• Median Net Sales:  $579,292
• Lowest Net Sales:  $264,892
• Highest Net Sales:  $692,682

Total

• Average Net Sales:  $913,209
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  42/97 (43%)
• Median Net Sales:  $863,896
• Lowest Net Sales:  $264,892
• Highest Net Sales:  $2,604,149

• As of December 31, 2023, there were 104 Outlet Center Franchises. Of those 104 locations, 97 (93.3%) Outlet Center Franchises are represented in this table.

• This table does not include:

• (i) five Outlet Center Franchises that are Co-Branded Franchises, and
• (ii) two Outlet Center Franchises that did not report sales in all 53 weeks of Fiscal Year 2023.

• No Outlet Center Franchises were reacquired by Auntie Anne’s or permanently closed in Fiscal Year 2023.

Part 3 – Average Net Sales by Quartile – Airport Franchises for Fiscal Year 2023

Top Quartile

• Average Net Sales:  $2,986,934
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  4/9 (44%)
• Median Net Sales:  $2,908,204
• Lowest Net Sales:  $2,199,558
• Highest Net Sales:  $4,526,804

2nd Quartile

• Average Net Sales:  $1,761,735
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  6/9 (67%)
• Median Net Sales:  $1,797,510
• Lowest Net Sales:  $1,541,372
• Highest Net Sales:  $2,045,002

3rd Quartile

• Average Net Sales:  $1,226,358
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  5/9 (56%)
• Median Net Sales:  $1,374,295
• Lowest Net Sales:  $907,949
• Highest Net Sales:  $1,528,359

Bottom Quartile

• Average Net Sales:  $589,752
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  5/9 (56%)
• Median Net Sales:  $595,407
• Lowest Net Sales:  $374,262
• Highest Net Sales:  $827,185

Total

• Average Net Sales:  $1,641,195
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  15/36 (42%)
• Median Net Sales:  $1,534,865
• Lowest Net Sales:  $374,262
• Highest Net Sales:  $4,526,804

• As of December 31, 2023, there were 42 Airport Franchises. Of those 42 locations, 36 (85.7%) Airport Franchises are represented in this table.

• This table does not include:

• (i) two Airport Franchises that are Co-Branded Franchises,
• (ii) one Airport Franchise that did not report sales in all 53 weeks of Fiscal Year 2023, and
• (iii) three Airport Franchises that opened in Fiscal Year 2023.

• This table also does not include two Airport Franchises that permanently closed during Fiscal Year 2023, which had been open for at least 12 months prior to closing.

• No Airport Franchises were reacquired by Auntie Anne’s in Fiscal Year 2023.

Part 4 – Average Net Sales by Quartile – Cinnabon Co-Branded Franchises for Fiscal Year 2023

Top Quartile

• Average Net Sales:  $1,857,839
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  6/15 (40%)
• Median Net Sales:  $1,720,623
• Lowest Net Sales:  $1,459,403
• Highest Net Sales:  $2,988,886

2nd Quartile

• Average Net Sales:  $1,282,854
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  8/15 (53%)
• Median Net Sales:  $1,291,542
• Lowest Net Sales:  $1,127,288
• Highest Net Sales:  $1,447,285

3rd Quartile

• Average Net Sales:  $1,015,346
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  7/14 (50%)
• Median Net Sales:  $1,027,657
• Lowest Net Sales:  $900,447
• Highest Net Sales:  $1,114,306

Bottom Quartile

• Average Net Sales:  $585,609
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  8/15 (53%)
• Median Net Sales:  $595,074
• Lowest Net Sales:  $217,299
• Highest Net Sales:  $863,156

Total

• Average Net Sales:  $1,188,294
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  24/59 (41%)
• Median Net Sales:  $1,127,288
• Lowest Net Sales:  $217,299
• Highest Net Sales:  $2,988,886

• As of December 31, 2023, there were 63 Cinnabon Co-Branded Franchises. Of those 63 locations, 59 (93.7%) Cinnabon Co-Branded Franchises are represented in this table.

• This table does not include:

• (i) two Cinnabon Co-Branded Franchises that opened during Fiscal Year 2023,
• (ii) one Airport Franchise that converted to a Cinnabon Co-Branded Franchise during Fiscal Year 2023, and
• (iii) one co-branded franchise that converted to a Cinnabon Co-Branded Franchise during Fiscal Year 2023.

• No Cinnabon Co-Branded Franchises were reacquired by Auntie Anne’s or permanently closed during Fiscal Year 2023.

• Net Sales for Cinnabon Co-Branded Franchises includes revenue generated from the sale of both Auntie Anne’s and Cinnabon products.

• Some Shops have sold or earned this amount. Your individual results may differ. There is no assurance that you will sell or earn as much.

• “Net Sales” includes all revenues generated by a Shop or conducted from or with respect to a Shop, whether the sales are evidenced by cash, check, credit, charge, account, barter or exchange, but does not include:

• (a) the initial sales or reloading of gift cards,
• (b) discounts,
• (c) the sale of food or merchandise for which refunds have been made in good faith to customers,
• (d) the discounted portion of employee meals,
  (e) sales, meals, use, or excise tax imposed by a governmental authority directly on sales and collected from customers, provided that the amount for the tax is added to the selling price or absorbed therein and is actually paid by you to a governmental authority,
• (f) the sale of equipment used in the operation of the Shop, or
• (g) tips.

• In this Item 19, Auntie Anne’s has not included sales for satellite retail units (SRUs) that are related to any of the Shops.

• These sales figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the Net Sales figures to obtain your net income or profit.

• Auntie Anne’s calculated the figures in the tables in these financial performance representations using financial reports submitted by franchisees.

• Auntie Anne’s has not audited or independently verified these financial reports nor has it asked questions of the submitting franchisees to determine whether they are in fact accurate and complete, although Auntie Anne’s has no information or other reason to believe that they are unreliable.

• No certified public accountant has audited these figures or expressed his or her opinion concerning their content or form.

Section VI – Auntie Anne’s Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️