Introduction

1.

Why did you choose this franchise? (E.g. demographic/psychographic appeal)

Auntie Anne's is so well liked that even stars like Shaquille O'Neal have franchised
with the company. The global pretzel chain is unique in that no other chains produce
product like it at such a large volume.

Financing
2. Using

information from the franchiser, calculate the total cost for starting the
franchise.
Name of Fee

Low

High

Signage

$3,500

$7,500

Professional Fees

$5,000

$10,000

Additional Funds (3 months)

$15,000

$51,000

ESTIMATED TOTAL (Excluding Real Estate)

$62,800

$170,000

Ongoing Fees: Initial Franchise Fee $35, 00 Ongoing Royal fees, 6%, Ad Royalty Fee, 3%
Cost to open a franchise: $194,900-$367,600
3. Describe exactly where your franchise will be located. Include any and all maps
of the area/region, population figures, etc., which support your decision.

1610 Salt Street

Vancouver, BC V5Y 0E4
Granville Island/False Creek
4.

Explain why this location is best for your franchise. (E.g. large target
market population, high foot traffic).
There are pubs and clubs near the store as well as tons of touristy shops all along the street.
Population of Grandville: 15,738 (2013)

5) Summarize the real estate costs of starting a franchise operation in this

location. If possible, include exact costs.
(1,200 sq. ft. x 3) = 3,600$ a month.
People

6).an in-depth description of the franchises target market, including a complete

analysis of the most important demographic and psychographic -variables.
The target market is hungry people shopping in Granville. Granville is famous for their markets,
more specifically the food. Although the price is an annoying factor, customers say its worth it
due to the amazing cultural food. Granville centres around food, which is why Aunties Annes
would do so well.

7). what does your marketing research state about the breadth and depth of the
demand for your franchises product?
Granville has a lot of different cultured expensive food , a store selling a cheap familiar food
would get a lot of attention.

1. What does the initial franchise fee cover? Does it include a starting inventory of
supplies and products?
Cost to open a franchise: $194,900-$367,600. Auntie Annes has relationships with thirdparty sources which offer financing to cover the following: franchise fee, start-up costs,
equipment, inventory, accounts receivable, payroll

2. How are the periodic royalties calculated and when are they paid
The current royalty fee is 7 percent. This fee payment includes the rights to use the
Auntie Annes LLC trademarks, trade secret recipes and processes, and
contributes to the overall support system (which includes training, field support,
purchasing, construction, new product development, and quality control, among
other services). There is also an advertising/marketing and development fund fee of
1 percent that supports all marketing programs.

3. Are all trademarks and names legally protected ?

Yes

4. Who picks the store location?

The Auntie Annes company

5. Are you assigned an exclusive territory?

The Franchise Agreement does not the franchisee any territorial rights or
protections in any geographic area. The Franchise Agreement licenses the
franchisee to manufacture and sell Auntie Annes products at retail only from a
specific Auntie Anne's Shop location that the franchisor accepts. The franchisor does
not grant the franchisee any exclusive territory or other territorial rights under
these agreements other than the right to sell Auntie Anne's products at retail from
the Shop. The franchisee may face competition from other franchisees, from outlets
that Auntie Annes owns, or from other channels of distribution or competitive
brands that Auntie Annes controls.

6. If the territory is not exclusive, does the franchise have the right of first
refusal on additional franchises established in nearby locations?
No, thats the decision of the Auntie Annes company.

7. Is the franchisee required to purchase equipment and supplies from the

franchisor or other suppliers?
From the franchisor

8. Under what conditions can the franchisor and/or the franchisee terminate the
franchise agreement?
It depends on whether the franchise owner has complied with the franchise
agreement or if the franchisor kept their promises in the agreement. Usually
franchise agreements are terminated because of the lack of compliance of specific
franchise owners to keep system standards as stipulated by the franchisor.

9. Can the franchise be assigned to heirs?

No, the company will decide who takes over the franchise.

10. Who provides and pays for advertising and promotional items?
The person who bought the franchise.