Ann Rule

Posted in Used Books by admin on February 28, 2011

Ann Rule

Auntie Anne’s Franchise Review

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 Cost:

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

Ongoing Fees:

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

When looking to start any business it is important, particularly considering today’s market, that you look for specific ways to cut minimize or reduce overhead and risk. Any business is going to have risk, but it is important to have a full understanding of the amount of investment, startup cost and “ROI” (Return on Investment).

Most people are not aware that 80% of ALL franchise endeavors fail in the first two to five years leaving large debts looming for years thereafter.

One way and in my opinion the best way to cut overhead, startup and investment cost is to take advantage of the new age of entrepreneurship and start a business from the comfort of your home. Opportunities have emerged in the online market that are creating millionaires every single day. Learn more about the exciting opportunities tied to a business model that begins profitable by visiting: http://whatsbetterthanafranchise.com .

About the Author

Thomas White is an Internet Coach and Mentor, Real Estate Broker, Investor and multi-location franchisee, dedicated to helping other achieve financial freedom leveraging the online market. To see his methods of creating an automated and thriving online business or how you can leverage the internet to send your existing business through the roof visit:

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