In 2023, how many Annex Brands outlets ceased operations for reasons other than termination, non-renewal, or reacquisition by the franchisor?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Year | Outlets At Start Of Year | Outlets Opened | Termina- tions | Non- Renewals | Reacquired By Franchisor | Ceased Operations For Other Reasons | Outlets At End Of Year |
|---|---|---|---|---|---|---|---|---|
| AR | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | |
| 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
Source: Item 20 — Outlets and Franchisee Information (FDD pages 78–109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, a total of 12 outlets ceased operations for reasons other than termination, non-renewal, or reacquisition by the franchisor in 2023. This figure is derived from the 'Ceased Operations For Other Reasons' column in the Item 20 table, which provides a state-by-state breakdown of outlet activity over the past three years. This number excludes closures due to franchise terminations, non-renewals, or instances where Annex Brands reacquired the location.
Specifically, the table shows that in 2023, one outlet each in the states of Alabama, Colorado, Georgia, and Maryland ceased operations for other reasons. This means that these locations closed for reasons such as economic hardship, failure to meet brand standards, or other unforeseen circumstances that did not involve a direct action by Annex Brands to terminate or not renew the franchise agreement, nor a decision by Annex Brands to buy back the location.
For a prospective franchisee, this information is crucial for assessing the stability and risks associated with investing in an Annex Brands franchise. While a small number of closures for 'other reasons' may be expected in any franchise system due to various uncontrollable factors, a high number could indicate underlying issues with the business model, market conditions, or franchisee support. It would be prudent for potential franchisees to inquire further with Annex Brands about the specific reasons for these closures and what measures the company is taking to prevent similar occurrences in the future.