Auntie Anne’s is one of the most loved Pretzel places, and entrepreneurs looking to open a bakery franchise must be wondering how much does an Auntie Anne’s franchise owner make.
In this guide, we have revealed all the essential details about Auntie Anne’s franchise, including its sales figure, payback period, pros and cons, profit-earning potential, etc.
So read till the end and do not miss out on anything!
About Auntie Anne’s
Auntie Anne’s is a Pretzel and Lemonade chain that was founded in 1988 by Anne Beiler.
It all started when Anne started making Pretzel to fund her husband’s dream of opening a free family counseling service.
Soon she realized that this was what she wanted to do and took her business from a single farmer’s market to global locations.
Today, there are more than 1900 Auntie Anne’s locations in 25+ Countries and Union territories. Auntie
Anne’s offers different types of franchise models to entrepreneurs. In order to be eligible, the interested candidate must have liquid capital of $120,000 and minimum net worth of $300,000.
If you meet these basic requirements to own an Auntie Anne’s franchise, then keep on reading to find out how much does Auntie Anne’s franchise owner make.
Auntie Anne’s Franchise Initial Investment Figure
| Franchise fee | $35,500 |
| Royalty fee | 7.0% |
| Marketing fee | 2.0% |
| Average sales | $343,000 |
| Investment (mid-point) | $230,000 |
| Payback period | 4 years |
| Minimum net worth | $300,000 |
| Minimum liquid capital | $120,000 |
How Much Does An Auntie Anne’s Franchise Owner Make?
The sales of Auntie Anne’s franchise can vary on the type of franchise model you choose, the location, day-to-day expenses, etc.
However, as per the FDD, Auntie Anne makes sales of $343,135 each year on average.
Note that this data is based on the performance of 94 outlet center franchises and 622 enclosed mall franchises.
How Much Does Auntie Anne’s Employee Earn?
The pay of Auntie Anne’s employees may vary depending on their experience level, location, designation, skills, department, etc.
However, according to Indeed, Auntie Anne’s pays its employees $8.29 per hour for Register to $19.50 per hour for the position of Restaurant Manager on average.
If we look at this in yearly terms, then Auntie Anne’s average salary ranges from $27,387 per year for someone with the title of Certified Pharmacy Technician to $60,000 per year for someone with the title of Business Consultant.
Pros & Cons Of Auntie Anne’s Franchise
Pros Of Auntie Anne’s Franchise
- Provides training and ongoing assistance.
- Offers solid support to franchises.
- Various franchise models to choose from.
- Proven Business Strategy.
- Profitable.
Cons Of Auntie Anne’s Franchise
- High royalty fees.
- No financing.
- No territory protection.
Auntie Anne’s Franchise Average Revenue & Profit
As mentioned above, Auntie Anne’s franchise owner makes an average of $343,135 in sales each year.
And with a 15-20% EBITDA profit margin, the franchise owner can expect to make average profits in the range of $54,960 – $89,609 a year.
The EBITDA of 15% is quite less as compared to the industry standard of 20-25% for similar franchises.
Also, note that we assumed 29% of labor cost and 25% of COGS to calculate profit margin according to the market standard since Auntie Anne’s does not provide information on the same.
| Profit-and-loss | Amount ($) | As % of sales |
|---|---|---|
| Sales | $343,135 | 100% |
| COGS | $(85,784) | 25.0% |
| Rent | $(72,000) | 21.0% |
| Labor | $(99,509) | 29.0% |
| Royalty + marketing fees | $(30,882) | 9.0% |
| Adjusted EBITDA | $54,960 | ~16% |
Auntie Anne’s Franchise Failure Rate
To find out the Auntie Anne’s franchise failure rate let us look at this table below:
How many Auntie Anne’s units have opened and closed?
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2019 | 1219 | 1200 | -19 |
| 2020 | 1200 | 1140 | -60 | |
| 2021 | 1140 | 1126 | -14 | |
| Affiliate-Owned | 2019 | 12 | 11 | -1 |
| 2020 | 11 | 12 | +1 | |
| 2021 | 12 | 12 | 0 | |
| Total Outlets | 2019 | 1231 | 1211 | -20 |
| 2020 | 1211 | 1152 | -59 | |
| 2021 | 1152 | 1138 | -14 |
As we can see, during the last three years, Auntie Anne’s has been declining, with 93 franchised location closing. This represents 8% of Auntie Anne’s stores.
The decline could be because of the unwillingness of the franchises to renew their term, or effect of Covid, or the poor performance of the franchises.
We suggest you talk to current franchise owners to find more details about this.
Auntie Anne’s Franchise Payback Period
To find out the Auntie Anne’s franchise payback period, let us do some calculation:
| AVERAGE INVESTMENT | $230,000 |
| AVERAGE REVENUE PER OWNER | $343,135 |
| AVERGAGE PROFIT PERCENTAGE | 15% |
| AVERGAGE PROFIT PER YEAR | $54,960 |
| AVERAGE PAYBACK PERIOD | 4 years |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 230000/54960 = 4.1 = 4 Years based on median
The average investment for a Auntie Anne’s Franchise is $230,000.
With an average profit percentage of 15%, the average profit per year is $54,960.
This means that the average payback period for a Auntie Anne’s Franchise is 4 years, and the total investment of $230,000 would be recovered within this period.
Facts About Auntie Anne’s
- Auntie Anne’s first travel hub location opened in 1995 in New York’s Penn Station.
- The Beilers sold Auntie Anne’s to cousin Sam Beiler in 2005 to continue their dream of building a community counseling center.
- Different Auntie Anne’s locations sell different types of toppings.
- Auntie Anne’s has made so many pretzels that the whole earth can be circled with it at least 50 times.
- Anne started this pretzel shop with just $6000 in her pocket.
- You can always ask for a free sample at Auntie Anne’s.
- The fastest time record of folding a pretzel at Auntie Anne’s is 3 seconds.
((https://www.huffpost.com/entry/auntie-annes-who-woulda-thunk_n_6029274))
What Is Auntie Anne’s Known For?
Auntie Anne’s is known for their delicious hand-made Pretzels and a variety of Lemonade and drinks especially. However, they do serve many different items, including pizza, hot dogs, nuggets, and so on.
What makes Auntie Anne’s so special is that they bake their Pretzels fresh each time, and their soft, hand-made pretzels keep the customers coming in.
And throughout the years, one thing that Auntie Anne’s has always believed in is giving back to the community, which reflects in their actions.
If you have never been to Auntie Anne’s, then here are some popular menu items that you must try:
- Roasted Garlic & Parmesan
- Pepperoni
- Jalapeño
- Raisin
- Cinnamon Sugar
- Sour Cream & Onion
- Sweet Almond
Is Auntie Anne’s A Profitable Franchise?
The profitability of any company gets affected by the initial investment and recovery time.
So if we talk about Auntie Anne’s franchise, then a person can make annual profits of $54,960 which seems less as compared to other bakery franchises.
However, the initial investment amount to open this franchise is also low – $229,692 on average.
And it would take a minimum of 4 years for you to recover this amount, and a good portion of your profit would go towards recovering your initial investment for 4 years.
So for 4 years at least, you won’t get to keep much from the profit earnings of $54,960.
If you think the investment and pack back period time is worth the wait, only then should you buy this franchise.
Auntie Annes’ Franchise Earning Potential
Different franchise models of Auntie Anne’s generate different amounts of profits.
For example, Enclosed Mall franchises have made $488,224 in yearly sales, and Outlet Center franchises have made as much as $552,210 in yearly sales.
So this franchise does have a decent earning potential. However, there are a lot of factors that affect and influence the sales and profit that you will make. So you must make this decision carefully.
Wrap Up
Auntie Anne’s is a popular bakery chain that does not have rigid franchise policies, nor does it require very high investment.
However, franchise owners can make profits in the range of $54,960 – $89,609 only and must wait for 4-year packback period before being able to enjoy the entire profit.
Not to mention the high royalty fees of 7% of net sales and other fees would take up even more from the profit earned.
So to conclude, Auntie Anne’s is profitable, but the money that the franchise owner would get to keep is not that high.
We recommend you look for alternatives instead, such as Cinnabon, Crumbl Cookies, etc.
Frequently Asked Question
How much royalty and marketing fees does Auntie Anne's charge?
Auntie Anne’s charges a royalty fee of 7% of net sales, which is very high compared to the industry standard of 4%. And it charges marketing fees of 3% or net sales.
Does Auntie Anne's offer financing?
No, Auntie Anne’s does not offer financing. However, they can provide you with a list of lenders that can help you with the same.
What is the minimum financial requirement to open Auntie Anne's franchise?
The minimum financial requirement to open Auntie Anne’s franchise are:
- $300,000 Minimum Net Worth.
- $120,000 Minimum Liquid Capital.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.