Auntie Anne's

Auntie Anne's franchise fee for a standard Full Shop is $35,500 — firm, no range, no negotiation (VetFran discount brings it to $20,000). That's below the QSR/snack category average, and well below a co-branded Cinnabon shop at $66,000 or a Jamba co-branded shop at $71,000. Concession formats like food trucks and trailers have a much lower entry fee of $10,500, though the vehicles add $48K–$181K.

For a standard Full Shop, total investment runs $156K to $638K. The enormous range — nearly $500K — is almost entirely in the construction and buildout line item ($27K to $260K). The equipment package adds $25K–$65K, millwork $5K–$28K, and you'll need $15K–$54K in three-month working capital. For a comparable fast-food concept in a mall food court, that's a reasonable total, though the wide range means you should get detailed contractor bids before signing.

The ongoing royalty is 7% of net sales — currently capped at 8% at the franchisor's sole discretion. That's above the QSR average of 5–6%, though consistent with specialty snack franchises where the brand is doing a lot of the location-finding work. The ad fund runs approximately 2.5% of net sales currently (the full 3% standard rate has been temporarily reduced — 2% National, 0.5% Local for 2025).

Additional ongoing costs that add up: the loyalty app runs $51/month, online ordering is $54/month plus 0.04% per transaction, ordering support fees run 3% of pre-tax transactions through digital channels, and you're required to refresh your space every 5 years ($1,200–$6,000 for a site survey and design fee alone, before any actual renovation costs). None of these are optional.

Auntie Anne's discloses detailed Item 19 data by location type, which is genuinely useful given how much the venue drives performance.

For the 498 enclosed mall franchises tracked in FY2024, average net sales were $763K with a median of $713K. The top quartile averaged $1.2M. The 95 outlet center locations — often higher-traffic premium outlets — averaged $923K, median $892K. The 36 airport locations are in a different class: average $1.8M, median $1.77M, with the top quartile averaging $3M.

The 60 Cinnabon co-branded shops averaged $1.2M — reflecting the combined product offering.

Be clear about what these figures represent: net sales only, no cost breakdown, no disclosure of gross profit or net income. Auntie Anne's doesn't tell you what it costs to run one of these locations. With a 7% royalty, 2.5% ad fund, and typical mall food court COGS running 28–35%, margins are tighter than the revenue figures suggest. A $763K mall location paying ~7% royalty and ~30% COGS is generating perhaps $450K in gross profit before rent, labor, and other operating expenses.

Auntie Anne's is one of the most stable systems in this analysis. The franchised count grew from 1,126 in 2022 to 1,182 in 2024 — net +56 locations over two years. In 2024 alone, 75 new locations opened against 41 closures, for a net gain of 34. The system projects 91 new openings in the next fiscal year, with 285 franchise agreements already signed but not yet open.

Closure rates are low: 41 closures in 2024 against a base of 1,193 total units is a 3.4% closure rate, below the category average. The transfer volume is moderate (52 in 2024), suggesting franchisees are selling going concerns rather than walking away. This is a healthy franchise system by the numbers.

The mandatory refresh/remodel cycle is a real ongoing cost that the headline investment figures don't capture. Every 5 years, you're required to refresh your space; every 10 years, a full remodel. In a mall environment, the landlord's required design standards may force changes regardless of the franchise cycle.

Your rent situation is the silent variable in every Auntie Anne's analysis. Mall food court rents vary dramatically — and the franchisor's location requirement means you're negotiating with mall operators who have significant leverage. If foot traffic declines in your mall, your sales drop but your rent may not.

The royalty escalation clause is worth noting: the 7% rate can rise to 8% at the franchisor's sole discretion with no cap on when or how often. The ad fund has been temporarily reduced from 3% total — it can return to full rate without notice. Non-compliance fees of $25–$500 per violation per day can accumulate quickly in a food environment where standards are granular.