When is the $350 ownership change fee due for an Annex Brands franchise?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Ownership change | Currently, $350 | Before change | If you change less than a controlling |
| (non-transfer) (12) | ownership interest in the franchise |
Source: Item 6 — OTHER FEES (FDD pages 24–32)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, a $350 ownership change fee is due before the change. This fee applies when a franchisee changes less than a controlling ownership interest in their franchise. This means that if a franchisee sells a portion of their business but retains the majority stake and control, this fee is applicable.
This fee is separate from the transfer fee, which applies when a controlling interest in the franchise is transferred. The FDD specifies that the ownership change fee is not a transfer fee. The transfer fee is a percentage of the initial franchise fee.
It is important for prospective franchisees to understand the conditions under which this fee is charged to avoid unexpected costs. Franchisees should consult the franchise agreement for a precise definition of 'controlling interest' to determine when the larger transfer fees apply versus this $350 fee.