Auntie Anne’s Franchise Costs $108K – $1.1M (+ 2024 Profits)

Auntie Anne’s, a renowned name in the hand-rolled soft pretzel industry, was founded in 1988 by Anne Beiler, who began her journey with a single stand in a Pennsylvania farmer’s market.  Auntie Anne’s started franchising in 1991. The brand is celebrated for bringing freshly baked, hand-rolled soft pretzels to people all around the world, maintaining a steadfast commitment to quality and the power of a fresh, warm treat straight from the oven.

Headquartered in Atlanta, Georgia, Auntie Anne’s has grown to become the world’s largest hand-rolled soft pretzel franchise, setting itself apart with its focus on fresh, high-quality ingredients and a simple yet delicious menu that appeals to a wide audience. 

The franchise prides itself on its operational simplicity and flexible footprint options, making it a perfect fit for high-traffic, non-traditional venues such as college campuses, airports, and shopping malls. Auntie Anne’s has crafted a business model that emphasizes support for its franchisees, offering comprehensive real estate assistance, franchise training, and a dedicated team of business consultants to ensure the success of each location.

Type of Expenditure	Amount (Full Shop)
Initial Franchise Fee	$35,500
Construction and Build Out Costs	$27,000 – $265,000
Permitting	$2,000 – $4,000
Equipment Package	$21,000 – $64,500
Millwork	$5,000 – $28,000
Furniture	$0 – $2,500
Menu Board, Graphics, and Interior Signage	$250 – $23,000
Exterior Signage	$3,000 – $8,300
Computer System	$7,400 – $27,400
Smallwares	$1,000 – $7,000
Architect/Engineer	$2,000 – $13,000
Rent	$2,000 – $10,000 Monthly
Grand Opening Marketing	$2,500 – $7,500
Legal and Accounting Fees	$5,000 – $10,000
Insurance	$1,575 – $8,200
Misc. Opening Costs/Office Supplies	$13,000 – $25,000
Security Deposits	$0 – $15,000 As incurred
Management Training Program Fee	$0 – $2,500 As incurred
Travel and Living Expenses during Training	$3,100 – $5,100 As incurred
On-Site Training Fee	$0 – $5,300 As incurred
Opening Inventory	$3,300 – $4,000 As incurred
Additional Funds – 3 Months	$15,000 – $54,000 As incurred
Total Initial Investment	$149,625 – $624,800

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

The Initial Franchise Fee is $35,500. This fee is paid at the signing of the Franchise Agreement and is a lump sum. The specific amount can vary based on several factors, including any discounts, incentives, or specific circumstances that Auntie Anne’s may consider for individual franchisees.

Royalty Fee

The Royalty Fee is set at 7% of the Net Sales of the Franchised Business, payable weekly. This fee may be increased up to a maximum of 8% at the franchisor’s discretion.

Transfer Fee

The Transfer Fee is 50% of the then-current Initial Franchise Fee for a Control Transfer, and 10% for a transfer to a related party or that is not a Control Transfer.

Renewal Fee

The Renewal Fee is 20% of the then-current Initial Franchise Fee, payable before signing the renewal franchise agreement.

Relocation Fee

A Relocation Fee equal to 10% of the then-current Initial Franchise Fee may be charged for the costs associated with accepting, evaluating, and relocating the Franchised Business.

Lease Extension Review Fee

This fee ranges from $500 for a lease term of two years or less to $2,000 for a term of five years or more, required for the franchisor’s approval of lease renewals or extensions.

Lease Documentation Late Fee

A $500 per month fee is applicable if the franchisee fails to provide a signed copy of any lease or its modifications within 15 days after execution.

SRU Initial Setup and Rental Fees

Involves a $500 set-up fee and a $1,000 security deposit, among other potential fees. 

Franchise Pros and cons

Operating an Auntie Anne’s franchise has its advantages and disadvantages.

Pros

• Comprehensive Training: The franchisor offers extensive training to franchisees and their employees consisting of 48 hours of classroom training and 24 to 64 hours of on-the-job training. The training includes operations training, marketing, HR, general business practices, and pretzel rolling skills. The franchisor trains franchisees at the same level to ensure a consistent and uniform brand.
• Unique and evolving products: To differentiate itself from its competitors, the brand makes freshly hand-rolled pretzels from scratch on the site and sells them within 30 minutes of being baked. The brand also keeps innovating and creating new products to keep up with industry trends and customer tastes.
• Solid franchise support: To help new franchisees grow and become profitable, Auntie Anne offers them maximum support. Franchisees get support in various fields, such as food and beverage operations, administration, and finance.
• Strong Brand Recognition: Auntie Anne’s brand has stores in all 50 states of the US and globally. In addition, its restaurants are located in high-traffic places such as malls, airports, train stations, and universities.
• Strategic marketing and advertising: The franchisor offers its franchises superb support in research and innovation, as well as professional marketing and promotional campaigns.
• Growth opportunity: The Auntie Anne’s franchise has steadily grown in the last 30 years, currently having over 2,000 stores globally. Franchisees can join a fast-growing brand and easily penetrate new markets. Currently, the brand has opportunities for expansion in locations such as Bristol, Central London, and Scotland.
• Central supply chain: To make sure franchisees enjoy controlled and regulated supplies, the franchisor ensures food products, packaging, cleaning products, and small wares are ordered online from one supply chain at competitive commercial rates.

Cons

• No financial assistance: Auntie Anne’s does not offer any direct or indirect financing to its franchisees for trade fixtures, opening inventory, or any other purpose. It also does not guarantee them any lease, grant, or note.
• No territory protection: The franchisor does not offer franchisees any exclusive territory protection. It only grants franchisees the right to manufacture and sell the franchisor’s products from a specific shop and location approved by the franchisor.
• No absentee ownership: Auntie Anne’s is not a good option for investors looking for absentee business management. Franchisees must be involved or appoint a representative to undertake decision-making and daily restaurant operations.

How to apply

Opening a Auntie Anne's franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Auntie Anne's franchise.

1. Conduct Initial Research

• Understand the Brand: Familiarize yourself with Auntie Anne’s history, products, and business model. Knowing the brand inside out is crucial for any franchisee.
• Market Analysis: Assess the demand for pretzels and similar snack foods in your intended area. Look into local competition and potential customer base.
• Franchise Disclosure Document (FDD) Review: Obtain and carefully review Auntie Anne’s FDD. This document provides essential information about the franchise, including fees, investment requirements, and support.

2. Evaluate Financial Requirements

• Initial Investment: Consider the initial investment required, which includes franchise fees, equipment, inventory, and other startup costs.
• Financial Resources: Assess your financial resources to determine how you will cover the initial investment and operating costs. This might include personal savings, loans, or investors.
• Ongoing Fees: Understand the ongoing fees, such as royalties and marketing fees, that you will need to pay to Auntie Anne’s as part of the franchise agreement.

3. Submit a Franchise Application

• Application Process: Complete Auntie Anne’s franchise application form, providing detailed information about your background, financial situation, and business experience.
• Initial Discussion: If your application piques interest, you’ll likely have an initial discussion or interview with a franchise representative to further explore the opportunity.

4. Develop a Business Plan

• Detailed Planning: Draft a comprehensive business plan outlining your strategy for launching and operating your Auntie Anne’s franchise. This should include financial projections, marketing strategies, and location analysis.
• Approval Process: You may need to present your business plan to Auntie Anne’s or potential investors to gain approval and secure funding.

5. Find the Ideal Location

• Site Selection: Identify potential locations considering foot traffic, visibility, and proximity to complementary businesses. Malls, airports, and train stations are popular locations for Auntie Anne’s franchises.
• Lease Negotiation: Work with real estate professionals to negotiate a lease. Auntie Anne’s corporate may provide assistance or guidelines for site selection and lease agreements.

6. Training and Support

• Comprehensive Training: Attend Auntie Anne’s training program, which typically covers product preparation, customer service, and business management.
• Operational Support: Take advantage of the support offered by Auntie Anne’s, including marketing, operational guidance, and access to an established supply chain.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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