What additional fee is required when converting an existing business to an Annex Brands retail center?

According to Annex Brands' 2025 Franchise Disclosure Document, if you convert an existing business to a standard or flex retail center, you must pay a $4,000 conversion training fee when you sign the franchise agreement. This fee is in addition to other initial fees and is specifically for the training associated with converting an existing business to the Annex Brands system. This fee is nonrefundable and uniform for all conversion franchisees, unless you already own and operate one of their retail centers or Commercial Logistics Centers.

In addition to the conversion training fee, converting an existing business to an Annex Brands retail center may also involve other fees, such as the architect fee, which can range from $0 to $6,000 for a standard retail or flex retail center conversion, depending on the condition of the site and whether architectural plans are required. Also, a New Center/New Owner Marketing Program Deposit of $5,500 is required for a conversion standard or flex center. Furthermore, the shipping deposit for a conversion standard or flex retail center ranges from $2,000 to $15,000.

It's important to note that Annex Brands also considers several factors to determine if a business being converted to a standard or flex retail center will qualify for a reduced initial franchise fee. These factors include the location and size of the business, the services offered, the length of time the business has been operating, and the adaptability of the business to the Annex Brands system. Depending on whether the existing business qualifies for a reduced initial franchise fee, the initial franchise fee is $17,500.

Prospective franchisees should carefully review Item 5 of the FDD and discuss these fees and requirements with Annex Brands to understand the full financial implications of converting an existing business.