In this 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 2022 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 2022 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 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

Section IV – Background information on the Auntie Anne’s franchise opportunity, including relevant news updates

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 2022 FDD, including information on the:

• fiscal year 2021 average, median, lowest, and highest net sales, by quartile, for the 455 Auntie Anne’s enclosed mall franchises that were eligible franchises in fiscal year 2021 (an “eligible franchise” is a franchise that reported sales in all 52 weeks of fiscal year 2021 and was owned by the same owner throughout fiscal year 2021)

• fiscal year 2021 average, median, lowest, and highest net sales, by quartile, for the 90 Auntie Anne’s outlet franchises that were eligible franchises in fiscal year 2021

• fiscal year 2021 average, median, lowest, and highest net sales, by quartile, for the 23 Auntie Anne’s airport franchises that were eligible franchises in fiscal year 2021

• fiscal year 2021 average, median, lowest, and highest net sales, by quartile, for the 46 Auntie Anne’s-Cinnabon co-branded franchises that were eligible franchises in fiscal year 2021

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

• Auntie Anne’s franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $35,500
• Construction and Build Out Costs:  $27,000 to $194,000
• Permitting:  $2,000 to $4,000
• Equipment Package:  $21,000 to $60,000
• Millwork:  $5,000 to $27,000
• Furniture:  $0 to $2,500
• Menu Board, Graphics, and Interior Signage:  $250 to $12,000
• Exterior Signage:  $1,500 to $7,000
• Computer System:  $6,000 to $24,000
• Smallwares:  $1,000 to $4,500
• Architect/Engineer:  $2,000 to $12,000
• Rent:  $2,000 to $10,000
• Grand Opening Marketing:  $1,000 to $5,000
• Legal and Accounting Fees:  $5,000 to $10,000
• Insurance:  $2,000 to $10,000
• Miscellaneous Opening Costs/Office Supplies:  $13,000 to $25,000
• Security Deposits:  $0 to $15,000
• Training and Support Fees:  $0 to $3,500
• Travel and Living Expenses During Training:  $3,500 to $7,500
• Opening Inventory:  $3,300 to $4,000
• Additional Funds for 3 Months:  $15,000 to $51,000
• Total Estimated Auntie Anne’s Franchise Costs:  $146,050 to $523,500

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

• Auntie Anne’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $10,500 to $71,000
• 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
• 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
• 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

2019

• Outlets at the Start of the Year:  1,219
• Outlets at the End of the Year:  1,200
• Net Change:  -19

2020

• Outlets at the Start of the Year:  1,200
• Outlets at the End of the Year:  1,140
• Net Change:  -60

2021

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

Company-Owned

2019

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

2020

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

2021

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

Section IV – Background Information on the Auntie Anne’s Franchise

• Auntie Anne’s Celebrates National Auntie Day by Serving Up Free Pretzels and Giving Away $30,000 of Cold Hard Cash Powered by Cash App

• Get That Dough on National Pretzel Day 2022 with Free Pretzels at Auntie Anne’s

• Auntie Anne’s Proved It Was More Than Just a Mall Brand

• Auntie Anne’s Twists Up a New Refreshingly Fruity Line of Dragonfruit Mango Beverages to Give Guests the Perfect Sips of Summer

• It’s Time to Get Knotty: Auntie Anne’s and Evil Genius Beer Company Release a Limited-Edition Oktoberfest Lager

• Auntie Anne’s and Cinnabon Sign 10-Unit Co-brand Development Agreement to Expand in New York City

• Auntie Anne’s Ranks No. 390 on Entrepreneur’s 2022 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Auntie Anne’s Franchise (Item 19, 2022 FDD)

• This Item 19 presents information about the financial performance during Fiscal Year 2021 (the fiscal year ended December 26, 2021) of certain Enclosed Mall Franchises, Outlet Center Franchises, Airport Franchises, and Cinnabon Co-Branded Franchises that were eligible franchises in Fiscal Year 2021.

• 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 52 weeks of Fiscal Year 2021 and was owned by the same owner throughout Fiscal Year 2021.

• 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 Shops (other than the Cinnabon Co-Branded Franchises represented in Part 4);
• (iv) affiliate-owned Shops; and
• (v) Full Shops that were not eligible franchises in Fiscal Year 2021.

• 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 2021

Top Quartile

• Average Net Sales:  $981,739
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  43/114 (38%)
• Median Net Sales:  $925,679
• Lowest Net Sales:  $798,548
• Highest Net Sales:  $2,383,796

2nd Quartile

• Average Net Sales:  $685,318
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  50/114 (44%)
• Median Net Sales:  $679,856
• Lowest Net Sales:  $597,395
• Highest Net Sales:  $795,101

3rd Quartile

• Average Net Sales:  $527,870
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  58/113 (51%)
• Median Net Sales:  $529,605
• Lowest Net Sales:  $459,341
• Highest Net Sales:  $595,429

Bottom Quartile

• Average Net Sales:  $351,924
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  63/114 (55%)
• Median Net Sales:  $359,762
• Lowest Net Sales:  $116,626
• Highest Net Sales:  $456,758

Total

• Average Net Sales:  $636,952
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  202/455 (44%)
• Median Net Sales:  $597,395
• Lowest Net Sales:  $116,626
• Highest Net Sales:  $2,383,796

• As of December 26, 2021, there were 545 Enclosed Mall Franchises. Of those 545 locations, 455 (83.5%) Enclosed Mall Franchises are represented in this table.

• This table does not include:

• (i) eight Enclosed Mall Franchises that are Co-Branded Franchises (other than any Cinnabon Co-Branded Franchises represented in Part 4),
• (ii) 46 Enclosed Mall Franchises that did not report sales in all 52 weeks of Fiscal Year 2021,
• (iii) 27 Enclosed Mall Franchises that transferred ownership during Fiscal Year 2021, and
• (iv) nine Enclosed Mall Franchises that opened during Fiscal Year 2021.

• This table also does not include 25 Enclosed Mall Franchises that permanently closed during Fiscal Year 2021, 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 2021.

Part 2 – Average Net Sales by Quartile – Outlet Franchises for Fiscal Year 2021

Top Quartile

• Average Net Sales:  $1,120,251
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  8/23 (35%)
• Median Net Sales:  $997,606
• Lowest Net Sales:  $830,764
• Highest Net Sales:  $1,865,401

2nd Quartile

• Average Net Sales:  $761,102
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  9/22 (41%)
• Median Net Sales:  $759,985
• Lowest Net Sales:  $705,930
• Highest Net Sales:  $829,792

3rd Quartile

• Average Net Sales:  $616,829
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  9/22 (41%)
• Median Net Sales:  $599,007
• Lowest Net Sales:  $540,959
• Highest Net Sales:  $697,318

Bottom Quartile

• Average Net Sales:  $438,577
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  15/23 (65%)
• Median Net Sales:  $471,592
• Lowest Net Sales:  $237,036
• Highest Net Sales:  $540,620

Total

• Average Net Sales:  $735,195
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  37/90 (41%)
• Median Net Sales:  $701,624
• Lowest Net Sales:  $237,036
• Highest Net Sales:  $1,865,401

• As of December 26, 2021, there were 103 Outlet Center Franchises. Of those 103 locations, 90 (87.4%) Outlet Center Franchises are represented in this table.

• This table does not include:

• (i) four Outlet Center Franchises that are Co-Branded Franchises,
• (ii) six Outlet Center Franchises that did not report sales in all 52 weeks of Fiscal Year 2021, and
• (iii) three Outlet Center Franchises that transferred ownership during Fiscal Year 2021.

• This table also does not include two Outlet Center Franchises that permanently closed during Fiscal Year 2021, all of which had been open for at least 12 months prior to closing.

• No Outlet Center Franchises were reacquired by Auntie Anne’s in Fiscal Year 2021.

Part 3 – Average Net Sales by Quartile – Airport Franchises for Fiscal Year 2021

Top Quartile

• Average Net Sales:  $2,126,224
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  1/6 (17%)
• Median Net Sales:  $1,828,485
• Lowest Net Sales:  $1,698,706
• Highest Net Sales:  $3,670,748

2nd Quartile

• Average Net Sales:  $1,292,271
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  3/6 (50%)
• Median Net Sales:  $1,279,058
• Lowest Net Sales:  $1,142,744
• Highest Net Sales:  $1,524,972

3rd Quartile

• Average Net Sales:  $929,827
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  2/5 (40%)
• Median Net Sales:  $926,933
• Lowest Net Sales:  $894,150
• Highest Net Sales:  $953,878

Bottom Quartile

• Average Net Sales:  $413,834
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  2/6 (33%)
• Median Net Sales:  $358,384
• Lowest Net Sales:  $195,314
• Highest Net Sales:  $848,612

Total

• Average Net Sales:  $1,201,874
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  11/23 (48%)
• Median Net Sales:  $1,142,744
• Lowest Net Sales:  $195,314
• Highest Net Sales:  $3,670,748

• As of December 26, 2021, there were 41 Airport Franchises. Of those 41 locations, 23 (56.1%) Airport Franchises are represented in this table.

• This table does not include:

• (i) one Airport Franchise that is a Co-Branded Franchise (other than any Cinnabon Co-Branded Franchises represented in Part 4) and
• (ii) 17 Airport Franchises that did not report sales in all 52 weeks of Fiscal Year 2021.

• This table also does not include one Airport Franchise that permanently closed during Fiscal Year 2021, which had been open for at least 12 months prior to closing.

• No Airport Franchises were reacquired by Auntie Anne’s in Fiscal Year 2021.

Part 4 – Average Net Sales by Quartile – Cinnabon Co-Branded Franchises for Fiscal Year 2021

Top Quartile

• Average Net Sales:  $1,276,555
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  6/12 (50%)
• Median Net Sales:  $1,255,873
• Lowest Net Sales:  $1,054,023
• Highest Net Sales:  $1,553,318

2nd Quartile

• Average Net Sales:  $1,009,187
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  5/11 (45%)
• Median Net Sales:  $1,008,092
• Lowest Net Sales:  $917,337
• Highest Net Sales:  $1,051,363

3rd Quartile

• Average Net Sales:  $768,443
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  5/11 (45%)
• Median Net Sales:  $760,341
• Lowest Net Sales:  $645,477
• Highest Net Sales:  $889,344

Bottom Quartile

• Average Net Sales:  $463,869
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  5/12 (42%)
• Median Net Sales:  $449,260
• Lowest Net Sales:  $165,251
• Highest Net Sales:  $644,631

Total

• Average Net Sales:  $879,109
• Number and Percentage of Shops Attaining or Exceeding Average Net Sales:  25/46 (54%)
• Median Net Sales:  $903,340
• Lowest Net Sales:  $165,251
• Highest Net Sales:  $1,553,318

• As of December 26, 2021, there were 61 Cinnabon Co-Branded Franchises. Of those 61 locations, 46 (75.4%) Cinnabon Co-Branded Franchises are represented in this table.

• This table does not include:

• (i) five Cinnabon Co-Branded Franchises that did not report sales in all 52 weeks of Fiscal Year 2021,
• (ii) seven Cinnabon Co-Branded Franchises that transferred ownership during Fiscal Year 2021, and
• (iii) three Cinnabon Co-Branded Franchises that opened during Fiscal Year 2021 (including two that converted from a Full Shop to a Co-Branded Shop).

• This table also does not include one Cinnabon Co-Branded Franchise that converted from a Co-Branded Shop to a Full Shop during Fiscal Year 2021.

• No Cinnabon Co-Branded Franchises were permanently closed (other than the one conversion) or reacquired by Cinnabon during Fiscal Year 2021.

• 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) ⬇️