What accounting information will an Annex Brands franchisee receive as a member of the Advertising Association?

According to the 2025 FDD, Annex Brands franchisees who are members of an Advertising Association will receive an annual accounting of expenditures made by the Association. This applies whether the Association has multiple members or if the franchisee is the only member. The purpose of the Association is to develop cooperative local or regional advertising or promotional programs.

For a prospective Annex Brands franchisee, this means they will receive a report detailing how the Advertising Association spent its funds over the past year. This provides transparency and allows the franchisee to see how their advertising fees are being utilized for marketing and promotional activities. The franchisee can review the expenditures to ensure they align with the Association's goals and benefit the members.

It's important to note that the fees and assessments for the Advertising Association are the greater of $150 or 1% of Gross Receipts per month, and these fees are non-refundable. The franchisor may collect these fees and use them to fund local, regional, or national marketing efforts. Any unspent fees will roll over into a fund for future use. Therefore, the annual accounting helps franchisees understand how these mandatory fees are being managed and spent on advertising initiatives.