Auntie Anne’s Franchise Owner Salary, Cost & Failure Rate 2024

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!

How Much Does An Auntie Anne's Franchise Owner Make

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

Cost Or FeesAmount
Franchise fee$35,500
Royalty fee7.0%
Marketing fee2.0%
Average sales$343,000
Investment (mid-point)$230,000
Payback period4 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?

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.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%343135.00
Rent10.63%(36458.09)
Insurance5.31%(18229.05)
Salaries21.25%(72916.19)
Franchise Royalty Fees5.31%(18229.05)
Utilities2.13%(7291.62)
Cost of Goods Sold (COGS)26.56%(91145.23)
Labor (Variable)13.81%(47395.52)
Total (Expenses)85.00%(291664.75)
Net Profit15.00%51470.25

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Auntie Anne’s Franchise Failure Rate

To find out the Auntie Anne’s franchise failure rate let us look at this table below:

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201912191200-19
202012001140-60
202111401126-14

For the Franchised outlets:

  • In 2019, the failure rate was (19)/1219×100≈1.55%
  • In 2020, the failure rate was (60)/1200×100≈5%
  • In 2021, the failure rate was (14)/1140×100≈1.22%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20191211-1
20201112+1
202112120

For the Company-Owned outlets:

  • In 2019, the failure rate was (1)/12×100≈8.33%
  • In 2020, the growth rate was (1)/11×100≈9.09%
  • In 2021, the failure rate was (0)/12×100≈0.00%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201912311211-20
202012111152-59
202111521138-14

For Total outlets:

  • In 2019, the failure rate was (20)/1231×100≈1.62%
  • In 2020, the failure rate was (59)/1211×100≈4.87%
  • In 2021, the failure rate was (14)/1152×100≈1.21%

According to the above-mentioned data, we can see that the franchised outlets for Auntie Anne’s declined from 2019 to 2021, showing a failure rate between 1.55% and 1.22%.

On the other hand, for company-owned outlets, the failure rate of Auntie Anne’s was lying in the range between 8.33% and 0.00% for the same period of time. However, in the year 2020, the company showed a growth of 9.09%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that Auntie Anne’s franchise has declined in the years 2019-2021, showing a total failure rate between 1.62% and 1.21%.


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
AVERAGE PROFIT PERCENTAGE15%
AVERAGE PROFIT PER YEAR$51,470
AVERAGE PAYBACK PERIOD4 years

PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR

= 230000/51470  = 4.4 = 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 $51,470.

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?

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.

Who Owns Auntie Anne’s?

Auntie Anne’s is owned by Atlanta-based franchisor Focus Brands Inc., which also owns Cinnabon, Carvel, and McAlister’s Deli.

How Many Auntie Anne’s Locations Are There?

There are currently more than 2,000 Auntie Anne’s locations across 30 countries worldwide.

Where is Auntie Anne headquartered?

The headquarters of Auntie Anne is located in Lancaster, Pennsylvania, United States.

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