Auntie Anne’s Franchise Cost & Opportunities (2023)
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Have you ever considered opening an Auntie Anne’s franchise and owning a business? If your answer is yes, keep reading this article. In it, we will see everything you need to know to open your franchise and Auntie Anne’s franchise cost and franchise industry. Auntie Anne’s is a chain of pretzel shops started in 1998 by Anne Beiler in Pennsylvania.
FOCUS Brands owns the franchise, headquartered in Atlanta. They sell lovely, delicious pretzels, soft pretzels, fresh pretzels, hot pretzels, hand-rolled pretzels, drink products, sauces, and more. If you are considering starting your own profitable business, Auntie Anne’s shop is an excellent option food business. Due to its proven track record of success, it has a variety of opportunities.
Before you decide anything, it is vital to know more about the history, startup costs, earning potential, income streams, actual prices, franchise business plan, initial term, regional market supply chains, consistent product, food service, franchised location, franchise agreement document, food service, commercial rates, and initial franchise fee, so let’s take a look below.
Anne F. Beiler and Jonas Beiler started the company in 1998, bought a booth at a Pennsylvania market, and started with just one stand selling lemonade and homemade pretzels at a small Pennsylvania farmers’ market. Since then, the business has become world-renowned for the best hand-rolled pretzels, the largest pretzel franchise.
Anne and Jonas had a simple mission to serve people well, a high-quality, diverse product image library, and strengthen the idea of always leaving the dough recipe fresh. They were able to set a course.
Their love for the company grew even more vital when they included providing exceptional service. Nowadays, Auntie Anne’s popular franchise has started to serve many locations, even unconventional ones. Many are interested in the franchise pretzel, not only traditional shop owners.
Auntie Anne’s retail stores sell customers fresh pretzels, lemonade, and other items. Franchisees can also sell beverages sales, others food products and concession stands, where they can set up for a particular time in a trailer, markets, and food trucks so they can produce and sell.
They also make available, Co-Branded Shops where it is possible to do other types of business. The company’s franchisor is SPV LLC, a subsidiary of FOCUS Brands LLC. The company also gives pretzel franchise owners, more qualified, an opportunity to open additional sales points and earn extra income.
The qualified franchisees get the right to operate the pretzel bike services. The Auntie Anne’s franchise seeks people who can easily connect with the community. So, the franchisee must have a burning passion for their work, from preparing the dough to serving the customers.
Auntie Anne’s started in a small stall at a Pennsylvania farmers market, and in just three years, they opened 100 stores. The company expanded from a simple Pennsylvania farmers’ market to the largest pretzel franchise with 1,800 stores worldwide.
The American chain has grown in 1,500 locations across the country, not just traditional retail shops but in nontraditional areas such as airports, colleges, train stations, multiunit stores, amusement parks, stations, and international locations. “Pretzel Perfect” is the company’s mission statement.
- Auntie Anne’s is the most popular pretzel franchise in the country.
- Auntie Anne’s has been active in the market for over 30 years.
- Auntie Anne’s is famous for its excellent customer service.
- The franchisees work very hard to keep the standards high, which is why they are well-known.
- Auntie Anne’s is rapidly expanding its networks to other markets.
- Auntie Anne’s is a good franchise opportunity for people looking for a well-established business with loyal customers.
To open one of the existing franchises, an individual must make an initial investment of $146,050 to $523,500. Therefore, the net worth requirement will be $300,000, and the liquid capital will be around $120.
Auntie Anne’s franchise fee will be $35,000, the royalty fee 7%, and the advertising fee 1-3%. Then-current initial franchise fee Auntie Anne’s may vary depending on the type of store, operational expenses, franchise business operations, and other additional operating costs. In addition, this initial fee has a $10,000 incentive for more experienced people.
The financial value of an international franchise is $200,000. And the minimum liquid capital is $1,000,000. But, it is good to remember that this number is based on a minimum of 20 stores worldwide.
The term contract for an Auntie Anne’s franchise is 20 years, and the term for concession stores will be 10 years. If franchisees are eligible for renewal terms, traditional store owners may have a 20-year time available for renewal terms. Owners of concession shops will have no renewal term.
Average franchise profit may differ based on operating expenses, franchise location, marketing strategies, franchise concepts, backup capital, average sales, menu board, business practices, annual sales, etc. However, the average salary for an owner is approximately $45,000 and $60,000.
According to one report, the average annual profit of a franchise business, Auntie Anne’s, is $77,511. The average yearly gain of the top 30 franchise owners is around $89,749, an increase of 16% compared to the previous year.
An important note is that the franchisor does not provide franchise loans. Still, Auntie Anne’s does provide third-party financing to cover initial franchise fees, startup costs, equipment, market launches, actual expenses, startup costs, real estate assistance, accounts receivable, inventory, renewal requirements, and payroll.
They also offer to consult services to help you obtain financing. New potential franchise owners must sign a consulting agreement if they choose this option. SBA loans are available to qualified applicants.
Support and Training
The training team that will carry out extensive training consists of one franchise manager, who can be the pretzel franchise owner, additional participant, or primary contact. The other must be the one who will be the manager of the business and another person who will be designated by the franchisor. All participants must be at least 18 years old.
One person from the training team must complete the entire training, which will take two weeks before the store opens. Parts of the movement will be done online, at the head office, or at authorized locations. There will be 48 hours of classroom training and 24 to 64 hours of vocational training.
The first two fully open stores will have a representative provided. This representative will be in the environment for 2 days for on-site franchise training, startup, and operation assistance.
A cross-functional team will be provided for new food franchises, construction assistance, financial assistance, document assistance, operation assistance, pricing strategies, and real estate assistance. Franchisees are to attend conferences, webinars, and training sessions in the franchisor’s interest.
Therefore, Auntie Anne’s shop is the greatest when discussing pretzels. It is attractive for future owners and current franchise owners who can sell one unit or several units, nontraditional stores, non-concession stores, and branded stores. The food franchise has expanded in the national and international markets in four decades and is currently the largest pretzel shop.
Auntie Anne’s franchise provides initial training for franchisees and all assistance ranging from the pretzel dough recipe, Analysis Of Products, the best food brands, franchise reviews, franchise business plan, staff for franchise marketing, management team, high-quality, diverse product image library, infrastructure team, to the strategies used for marketing operations and complete guides. So if you want to start your own baking business to serve the best pretzels, Auntie Anne’s franchise will be an excellent option to consider.
We hope this article has been helpful and has answered your questions. You can go ahead with your pretzel franchise. Still, you must ensure that the franchise fee is ideal and your reasonable expenses. So that you only spend what is necessary because it is a demanding business model.
Paul Martinez is the founder of EcomSidekick.com. He is an expert in the areas of finance, real estate, eCommerce, traffic and conversion.
Join him on EcomSidekick.com to learn how to improve your financial life and excel in these areas. Before starting this media site, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.