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Detailed Information on Auntie Anne’s Initial Franchise Fee, Royalty Fee + 57 Other Fees (Items 5 and 6, 2022 FDD)

1. Initial Franchise Fee: $10,500 to $71,000

When you sign a Franchise Agreement, you must pay Auntie Anne’s an initial franchise fee (the “Initial Franchise Fee”) of $35,500 for a Full Shop, $10,500 for a Concession Shop, $66,000 for a Cinnabon Co-Branded Shop ($30,500 of which will be paid to Cinnabon), and $71,000 for a Jamba Co-Branded Shop ($35,500 of which will be paid to Jamba).

Auntie Anne’s will not refund any part of the Initial Franchise Fee.

Auntie Anne’s participates in the International Franchise Association’s VetFran program. For qualifying veterans or members of the Armed Forces, the Initial Franchise Fee for a Full Shop is $20,000.

If you sign multiple Franchise Agreements at the same time with a Multi-Unit Addendum to develop a set number of Shops, you must pay Auntie Anne’s all of the Initial Franchise Fees for all of the Shops that you commit to develop at the time you sign the Franchise Agreements with a Multi-Unit Addendum. If you fail to develop any of the Shops by the deadlines set forth therein or any Franchise Agreement(s) subject to the Multi-Unit Addendum are terminated, you will not receive a refund of any Initial Franchise Fees that you have prepaid.

In certain rare circumstances, Auntie Anne’s may permit installment payments of the Initial Franchise Fee on terms negotiated with the franchisee.

2. Royalty Fee: 7% of Net Sales, which Auntie Anne’s may increase in its sole discretion to 8% of Net Sales, for all Shops except: 6% of Net Sales for Jamba Co-Branded Shops, which Auntie Anne’s may increase in its sole discretion to 7% of Net Sales

Due Date: Payable weekly on the date specified in the Manuals (the “Payment Due Date”).

3. Advertising Contribution: currently, 1% of Net Sales for Shops located in Other Locations; 3% of Net Sales for Shops located in Streetside Locations; 3% of Net Sales for Cinnabon Co-Branded Shops (regardless of location), which cannot be increased; and 3% of Net Sales for Jamba Co-Branded Shops (regardless of location), which Auntie Anne’s may increase in its sole discretion to 4% of Net Sales

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Due Date: Payment Due Date.

4. Advertising Cooperative Contribution: an amount set by your Advertising Cooperative

Due Date: Payment Due Date.

5. Local Marketing Obligation: currently, each calendar quarter, you must spend not less than 1% of Net Sales on local market advertising

Due Date: Each calendar quarter.

6. Promotions: costs to purchase, lease, and install all materials necessary for promotional campaigns, including counter cards, posters, banners, signs, photographs, giveaway items, loyalty cards, and gift cards. Auntie Anne’s may charge you its costs, plus a reasonable administrative fee.

Due Date: As incurred.

7. Insufficient Funds Fee: Auntie Anne’s out-of-pocket costs and an administrative fee

Due Date: On invoice.

8. Interest: the lesser of 1.5% per month or the maximum legal interest rate

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Due Date: On invoice.

9. Late Reporting Fee: the then-current fee. Currently, $50 per day.

Due Date: On invoice.

10. Taxes and Other Payments: Auntie Anne’s cost

Due Date: Within 10 days after demand.

11. Subsequent Trainee Management Training Fee: currently, up to $500 per trainee per day

Due Date: Before attending training.

12. On-Site Training and Assistance: a reasonable fee; currently, $500 per day per trainer, plus trainers’ travel and living expenses

Due Date: On invoice.

13. Additional Support Consulting Fee: a reasonable fee; currently, $500 per day, plus travel and living expenses

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Due Date: On invoice.

14. Conference/Program Fee: a reasonable fee, which will vary by program

Due Date: As incurred.

15. Training Cancellation Fee: Auntie Anne’s out-of-pocket costs

Due Date: On invoice.

16. Learning Management System License Fee: the then-current fee. Currently, $40 per year. In the future, the fee is expected to be approximately $200 per year.

Due Date: As incurred.

17. Carvel Product Platform Training Fee: $750

Due Date: On invoice.

18. Regional Advisory Council Dues: currently, $250 per scheduled Council meeting in a given year (for two representatives to attend) and $125 for each additional participant per Council meeting

Due Date: By March 30th of each year.

19. Plan Review Fee: $1,000 per set of drawings

Due Date: On invoice.

20. Sublease Administration Fee: $200 monthly

Due Date: As incurred.

21. Lease Renewal/Extension Review Fee: the then-current fee. Currently, $2,000.

Due Date: As incurred.

22. Lease Documentation Late Fee: $500 per month (or partial month) until delivered

Due Date: As incurred.

23. SRU Initial Setup and Rental Fees: (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 $2,500)

Due Date: As incurred.

24. SRU Training Fees: $750

Due Date: As incurred.

25. SRU Lease Termination Fees: Auntie Anne’s actual expenses

Due Date: As incurred.

26. Remote Location Baking License Fee: $3,000 per year

Due Date: As incurred.

This annual fee applies when baking is done at a location remote from the franchised location.

27. Relocation Fee: 10% of the then-current Initial Franchise Fee

Due Date: Before you relocate.

28. Relocation Extension Fee: $1,500 per year that the term is extended

Due Date: Before Auntie Anne’s signs relocation Franchise Agreement.

29. Refresh/ Remodel Site Survey and Design Fee: the then-current fee. Currently, such fee is approximately $1,200 to $6,000 depending on the scope of the required changes.

Due Date: As incurred.

30. 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

Due Date: At transfer closing.

31. Renewal Fee: 20% of the then-current Initial Franchise Fee

Due Date: Before Auntie Anne’s signs the renewal Franchise Agreement.

32. Computer Systems Fee: a reasonable fee, which will vary based on the services provided

Due Date: As needed.

33. POS System Support Fee: currently, estimated to be between $50 and $250 per month

Due Date: As incurred.

34. Non-Focus Brands Portfolio POS Menu Setup: a reasonable fee, currently estimated to be $500 per day

Due Date: As incurred.

35. Mobile Device Management Software License Fee: currently, estimated to be between $6 and $30 per month

Due Date: As incurred.

36. Back Office and Polling Software Fee: currently, not charged. Estimated to be between $100 and $200 per month

Due Date: As incurred.

37. Credit Card Fees: transaction fees 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.

Due Date: As incurred.

38. Information Security and Compliance Fees: amount of fees; estimated to be between $75 and $150 per month

Due Date: As incurred.

39. Gift Card and Loyalty Program Fees: amount of administrative fees

Due Date: As incurred.

40. Loyalty App Fee: currently, $45 per month

Due Date: As incurred.

41. Online Ordering Fee: currently, $45 per month

Due Date: As incurred.

42. Ordering Support Fee: a reasonable fee, which will vary based on the services provided. Currently, $0.35 to $0.50 per transaction processed through Auntie Anne’s online ordering system.

Due Date: Payment Due Date.

43. Purchasing Program Fee: reasonable membership fees assessed by the Purchasing Program

Due Date: As incurred.

44. Supply Chain Fee: currently, $0.17 to $0.27 per case purchased through certain Appointed Distributors

Due Date: As incurred.

45. Master Insurance Policy Fee: currently, not charged; Auntie Anne’s does not have an estimate at this time

Due Date: As incurred.

46. Insurance: amount of unpaid premiums and Auntie Anne’s costs

Due Date: On demand.

47. Guest Relations Fee: currently, $20 to $40 for each guest complaint or other contact request that you do not timely respond to or for each excessive guest complaint

Due Date: As incurred, due on the Payment Due Date.

48. 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

Due Date: On invoice.

49. Failure to Comply With Standards or Law Fee: up to a $5,000 fee, plus Auntie Anne’s reasonable expenses connected with any inspection, examination, or analysis of products

Due Date: On invoice.

50. Development Deadline Extension Fee: $2,500 per missed deadline

Due Date: On invoice.

51. Repeated Inspection Fee: cost of inspection

Due Date: On invoice.

52. Audit: cost of audit

Due Date: On invoice.

If Auntie Anne’s audits you and finds that you understated Net Sales by 2% or more, you must reimburse it all reasonable expenses connected to the audit, review, or examination (including any reasonable accounting and attorneys’ fees). Auntie Anne’s estimates that the typical audit costs would be approximately $1,000 to $4,000.

53. Reimbursement of Services After Default: all costs and expenses that Auntie Anne’s reasonably incurs

Due Date: On invoice.

54. Liquidated Damages: the average monthly amount of Royalty that you owed Auntie Anne’s during the past 36 months, times the lesser of the remainder of term of the Franchise Agreement or 36
months

Due Date: Within 30 days of termination of your Franchise Agreement.

55. Appraiser’s Fee: 60% of appraiser’s fee

Due Date: On invoice.

You must pay this fee only if Auntie Anne’s elects to purchase your assets on termination or expiration of the Franchise Agreement and Auntie Anne’s cannot agree with you on the purchase price.

56. Indemnification of Auntie Anne’s: Auntie Anne’s cost

Due Date: On invoice.

You indemnify Auntie Anne’s from certain losses and expenses under the Franchise Agreement.

57. Attorneys’ Fees: Auntie Anne’s cost

Due Date: On invoice.

If Auntie Anne’s becomes a party to a proceeding on an Agreement between it and you, and it wins, or if it becomes a party to litigation or insolvency proceedings for your franchise, then you must pay its reasonable attorneys’ fees and court costs.

58. 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

Due Date: Before reinstatement.

If Auntie Anne’s terminates your Franchise Agreement due to a health and safety default, you cure the default and want to be reinstated, and it agrees to reinstate your Franchise Agreement, you must pay it a reinstatement fee.

59. De-identification Fee: Auntie Anne’s actual costs, plus interest, and an administrative fee equal to 15% of its actual costs