How Much Does It Cost to Open an Auntie Anne’s?

When you think of a trip to the mall or a layover at the airport, the familiar scent of Auntie Anne’s freshly baked pretzels might come to mind. With its iconic twisted treats, Auntie Anne’s has become a beloved snack destination. But what does it take to open an Auntie Anne’s location, and is it a profitable business? Let’s dive into the costs, fees, and potential profits of owning an Auntie Anne’s franchise.

Overview of Auntie Anne’s

Auntie Anne’s began in 1988 when founder Anne Beiler bought a stand in a farmers market in Downingtown, Pennsylvania. The simple yet irresistible pretzel recipe quickly garnered a loyal following, leading to quick expansion. 

Today, Auntie Anne’s operates 1,985 locations worldwide, including over 600 international stores, primarily in high-traffic venues such as malls and airports. Auntie Anne’s is part of the GoTo Foods portfolio, which includes other popular brands like Cinnabon, Carvel and Jamba. 

Initial Investment

The initial investment required to open an Auntie Anne’s franchise ranges from $149,625 to $624,800. This wide range accounts for various factors, including location, store size and build-out requirements. Prospective franchisees must also meet the financial criteria, which include a minimum liquid capital of $120,000 and a net worth of at least $300,000.

Franchise Fees

The franchise fee for an Auntie Anne’s location ranges from $10,500 to $35,500, according to the brand’s 2023 franchise disclosure document (FDD). This fee grants franchisees the right to operate under the Auntie Anne’s brand and includes initial training and ongoing support from the franchisor.

Ongoing Costs

In addition to the initial investment and franchise fee, franchisees can expect to pay ongoing royalties and marketing fees. The royalty fee is 7% of gross net, which supports the franchisor’s ongoing efforts in product development, brand marketing and franchisee support. Marketing fees, which range from 1.5% to 3% of net sales depending on store type, contribute to national and local advertising campaigns to maintain and grow brand awareness.

Potential Profits

Auntie Anne’s reported an average net sales figure of $768,870 for fiscal year 2023, based on data from 502 franchised shops located inside enclosed malls. This figure gives a general idea of potential revenue but does not account for costs such as rent, labor and ingredients, which can vary widely by location.

Support and Training

Auntie Anne’s offers comprehensive support and training to its franchisees. New owners undergo initial training covering all aspects of the business, from pretzel rolling techniques to customer service and financial management. Additionally, ongoing support includes field visits, marketing resources and access to a network of experienced franchisees.

Is It Worth It?

Opening an Auntie Anne's franchise can be a lucrative opportunity for those who meet the financial requirements and are looking to invest in a well-established brand. With a strong support system and a product that enjoys widespread popularity, franchisees have the potential to achieve significant success. 

However, as with any business venture, prospective owners should conduct thorough due diligence, considering both the initial costs and ongoing expenses.

Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.