Auntie Anne's Franchise Cost, Revenue & Review 2026
- Investment
- $158K – $836K
- Disclosed sales
- $792K
- gross sales, not profit
- SBA charge-off
- 4.7%
- on 78 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Auntie Anne's is a snack franchise known for hand-rolled soft pretzels made fresh in view of customers. Franchisees run kiosks and small storefronts in malls, airports, and high-traffic venues.
FranchiseVerdict summary · 2026
A Auntie Anne's franchise requires a total initial investment of $158K – $836K, including a $36K franchise fee and an ongoing 7.0% royalty[2]. Per the 2026 FDD, average unit revenue was $792K[2]. SBA 7(a) loans show a 4.7% charge-off rate across 78 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $158K – $836K
- 17th pct Retail
- Avg gross sales
- $792K
- Outlet subsetNet sales9th pct Retail
- Royalty
- 7.0%
- 29th pct Retail
- Units
- 1,247
- 43rd pct Retail
- SBA charge-off
- 4.7%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $158K – $836K including a $36K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $792K/year (median $733K) (reported for a subset of outlets rather than the whole system).
- RISKVerdict A (Strongest tier), verdict score 98/100 (higher is better). SBA loan charge-off rate of 4.7% across 78 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +54 franchised outlets in the latest year (92 opened, 38 closed); 290 signed but not yet open (Item 20).
- TERMSNo protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Auntie Anne's Franchisor SPV LLC
- Parent company
- GoTo Foods Systems LLC
- FDD Item 1, page 10 of the 2026 FDD
- Ultimate parent
- GoTo Foods LLC
- FDD Item 1, page 10 of the 2026 FDD
- Predecessor
- Auntie Anne's LLC (formerly Auntie Anne's, Inc.)
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 5620 Glenridge Drive NE, Atlanta, Georgia 30342
- Auditor
- Not specified in text (GoTo Systems/GoTo Foods audited statements)
- Audited financials
- Franchisor revenue
- $321.4M
- vs $308.9M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Same owner · FDD Item 1, page 10
6 other brands on this site name GoTo Foods LLC as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Omer Gajial
- Headquarters
- GA
- Founded
- 1991
- FDD year
- 2026
- States available
- 50
Can you afford it, and what does the money buy?
Entry cost runs 48% above the typical retail franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown22 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $36K | $36K | |
| Construction and Build Out Costs | $29K | $452K | |
| Permitting | $450 | $8K | |
| Equipment Package | $25K | $65K | |
| Millwork | $5K | $28K | |
| Furniture | $0 | $3K | |
| Menu Board, Graphics, and Interior Signage | $250 | $23K | |
| Exterior Signage | $3K | $8K | |
| Computer System | $11K | $32K | |
| Smallwares | $1K | $8K | |
| Architect/Engineer | $2K | $20K | |
| Rent | $2K | $15K | |
| Grand Opening Marketing | $3K | $8K | |
| Legal and Accounting Fees | $5K | $10K | |
| Insurance | $2K | $8K | |
| Misc. Opening Costs/Office Supplies | $13K | $25K | |
| Security Deposits | $0 | $15K | |
| Management Training Program Fee | $0 | $3K | |
| Travel and Living Expenses during Training | $4K | $6K | |
| On-Site Training Fee | $0 | $5K | |
| Total initial investment | $158K | $836K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $158K – $836K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $54K
- Top 40% of category vs category
- Franchise fee
- $36K – $36K
- Top 40% of category vs category
- Royalty
- 7.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of net sales |
| Marketing / ad fund | 2.0% of net sales |
| Technology fee | $0 |
| Training fee | $3K |
| Transfer fee | $0 |
| Renewal fee | $0 |
| Inventory (initial) | $3K – $4K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales land near the retail norm.
Reported for a subset of outlets rather than the whole system
Reported as net sales, not gross sales
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Auntie Anne's until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$531K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Auntie Anne's unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
Reported as net sales, not gross sales
- Avg gross sales
- $792K
- Per unit, per year
- Median gross sales
- $733K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Net Sales by location type and quartile
- Sample size
- 489 outlets
- vs category median 46 · large
- Range (low → high)
- $104K→$2.9MCited, not corroborated — printed on page 91 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $385K→$1.3M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 3 / 10 · above
Compared against 278 Retail brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $792K/year in gross sales. Revenue-to-investment ratio: 1.6x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 9.0% (near the Retail median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 6.9% CAGR over 3 years across 1,247 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Retail medians
How Auntie Anne's Compares
Category median of published Retail brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,247
- Opened
- 92
- Last reporting year
- Closed
- 38
- Terminated
- 35
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 3
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.0%
- Company-owned
- 11
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (3-yr)
- +6.9%
- Net unit change over 3 years
- 3-yr CAGR
- +6.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 35
- Not renewed
- 3
- Transferred
- 86
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 290
- 0.23 per open outlet · Item 20 Table 5
- Projected new
- 100
- Franchisor's next-year forecast
- Termination rate
- 94.2%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 50 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
50
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 78
- Loan volume
- $24.9M
- Median loan
- $296K
- 50th percentile
- Charge-off rate
- 4.7%
- on 78 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 95.3%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 48
- Defaults
- 2
- Typical loan rate
- 7.0%
- avg rate to borrowers
- Franchised industry avg
- 10.6%
- brand beats franchise avg ↓
- Jobs supported
- 1,111
- 4.5 per loan
- Lender concentration
- 9%
- top lender's share
Borrower mix: 48% went to startups / new businesses, 52% to established operators
Franchise vs independent — in snack and nonalcoholic beverage bars, franchised businesses charge off at 10.6% vs 8.9% for independents — franchising is associated with 19% higher SBA default risk in this category.
Vintage analysis
Auntie Anne's charge-off rate by loan vintage
Top lenders financing Auntie Anne's franchisees
Showing 3 of 48 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Auntie Anne's from SBA 7(a) FOIA data.
- Principal loss rate
- 1.9%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 7.01%
- Avg chargeoff amount
- $239K
- Lender concentration
- 9.0%
- Job velocity
- 4.5 per $100K
- Startup risk premium
- 0.0pp
- NAICS benchmark
- 7.0%
- NAICS 722515
- Jobs supported
- 1,111
Top SBA lendersTop lender holds 9% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 7 | $1.1M | 0.0% |
| 2 | Wells Fargo Bank National Association | 4 | $486K | 0.0% |
| 3 | PNC Bank, National Association | 4 | $1.2M | 0.0% |
| 4 | U.S. Bank, National Association | 3 | $285K | 0.0% |
| 5 | JPMorgan Chase Bank, National Association | 3 | $250K | 0.0% |
| 6 | CenTrust Bank, A Division of SmartBiz Bank National Associat | 3 | $1.8M | 0.0% |
| 7 | Newtek Small Business Finance, Inc. | 3 | $1.6M | N/A |
| 8 | Fulton Bank, National Association | 3 | $1.6M | 0.0% |
| 9 | PCB Bank | 2 | $492K | 0.0% |
| 10 | United Community Bank | 2 | $727K | 50.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 11 | 0 | 0.0% |
| PAPennsylvania | 7 | 1 | 33.3% |
| CACalifornia | 5 | 0 | 0.0% |
| MDMaryland | 5 | 0 | 0.0% |
| MOMissouri | 5 | 0 | 0.0% |
| NJNew Jersey | 5 | 0 | 0.0% |
| ALAlabama | 3 | 0 | 0.0% |
| FLFlorida | 3 | 1 | 33.3% |
| ILIllinois | 3 | 0 | -- |
| MIMichigan | 3 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 4.7% — 71% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Auntie Anne's presents moderate-to-cautious risk: slow unit growth, parent company litigation involving anti-competitive and data security failures, missing profitability disclosure, and wide cost variance create uncertainty about franchisee returns and franchisor accountability.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed for Auntie Anne's Franchisor SPV LLC itself. Item 3 discloses three affiliate settlement matters (Arby's no-poach, Dunkin' no-poach, Jimmy John's FDD omission) that have no impact on Auntie Anne's.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Not specified in text (GoTo Systems/GoTo Foods audited statements)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited consolidated financials are of GoTo Foods Systems LLC (parent/guarantor), not the franchisor SPV itself. Total revenues consist entirely of franchise revenues; figures in thousands converted to dollars. FY ended Dec 28, 2025 (yr1) and Dec 29, 2024 (yr2). Auditor for FY2025 was PwC; FY2024/FY2023 were audited by other auditors.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 98 / 100 verdict
- 01MINORSlow unit growth of only 4.6% YoY indicates market maturation or contraction pressure
- 02MEDParent company (Arby's RestauCo) involved in multiple litigation settlements (no-poaching, data breaches, disclosure omissions) suggesting systemic governance issues
- 03MEDAverage Net Income not disclosed in Item 19 prevents accurate ROI validation and suggests franchisor may be hiding unfavorable profit data
- 04MINORData privacy breaches and cyberattack disclosures raise concerns about customer payment security and franchisee liability exposure
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 0 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Metropolitan area of district court where franchisor's principal place of business is located (currently, Georgia) |
| Jury trial waiver | No |
| Governing law | GA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed for Auntie Anne's Franchisor SPV LLC itself. Item 3 discloses three affiliate settlement matters (Arby's no-poach, Dunkin' no-poach, Jimmy John's FDD omission) that have no impact on Auntie Anne's.
Items 10, 11
Training & Operations
- Classroom training
- 25 hrs
- On-the-job training
- 60 hrs
- Training location
- Online modules (classroom); Certified Training Locations designated by franchisor (OJT)
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor must approve (Accepted Location)
- Franchisor financing
- Not offered
- Item 10
- POS system
- Franchisor-designated POS vendor (CapEx or HaaS Program)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Franchisor-designated POS vendor (CapEx or HaaS Program)
Item 20 · call current owners
Franchisee Contacts
976 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Auntie Anne's franchise?
The total investment to open a Auntie Anne's franchise ranges from $158K – $836K, with an initial franchise fee of $36K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Auntie Anne's franchise owners earn?
According to Item 19 of the Auntie Anne's FDD, the average gross sales per unit is $792K. The median is $733K. Important context: Reported for a subset of outlets rather than the whole system; Reported as net sales, not gross sales. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Auntie Anne's?
Auntie Anne's is franchised by Auntie Anne's Franchisor SPV LLC. Its parent company is GoTo Foods Systems LLC. The ultimate parent named in the FDD is GoTo Foods LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Auntie Anne's FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Auntie Anne's FDD and qualifies whose outlets they describe.
What is Auntie Anne's's franchise failure rate?
Based on SBA 7(a) loan data, Auntie Anne's has a charge-off rate of 4.7% across 78 loans, meaning 4.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Auntie Anne's franchise locations are there?
As of their most recent FDD filing, Auntie Anne's has 1,247 total units in the United States, including 1,236 franchised units and 11 company-owned units. 92 new units were opened in the latest reporting year.
Is Auntie Anne's a good franchise to buy?
FranchiseVerdict rates Auntie Anne's as a A-grade franchise with a verdict score of 98 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.