factual

Are the Advertising Association fees and assessments refundable for Annex Brands franchisees?

Annex_Brands Franchise · 2025 FDD

Answer from 2025 FDD Document

aphic area. The fees and additional assessments of the Association will be allocated equitably among members of the Association. The Association fees and assessments will be the greater of $150 or 1% of Gross Receipts per month. The board of directors of the Association, or a regional licensee if there is one, may also periodically impose special assessments on the Association's members. The Association will require Franchisee to pay fees and assessments by automatic bank draft. These fees and assessments are non-refundable and are not collected for any 3rd party. The Association's bylaws will provide for each member to receive an annual accounting of expenditures by the Association. Franchisor, in its sole discretion, may elect to collect Association fees (including single-member Association fees) and/or assessments by automatic bank draft, and/or may elect to use these fees and/or assessments to fund multiple-Association local, regional, or national marketing, or advertising, efforts. Any Association fees and/or assessments collected by Franchisor that are not spent in the year in which they are collected will roll over into the Fund (see Subsection 10.A of this

Source: Item 22 — Contracts (FDD pages 109–110)

What This Means (2025 FDD)

According to the 2025 FDD, Annex Brands franchisees' Advertising Association fees and assessments are non-refundable. The fees are used for local or regional advertising and promotional programs.

The Advertising Association fees are the greater of $150 or 1% of gross receipts per month. The board of directors of the Association, or a regional licensee, may also periodically impose special assessments on the Association's members. Franchisees are required to pay these fees and assessments via automatic bank draft.

Annex Brands, at its discretion, may collect Association fees and/or assessments via automatic bank draft and use these funds for local, regional, or national marketing or advertising efforts across multiple Associations. Any unspent Association fees and/or assessments collected by Annex Brands will roll over into a fund. Franchisees are entitled to an annual accounting of expenditures by the Association.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.