How is the 'average' calculated for financial performance representations for Annex Brands?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
An "average" is calculated by adding the numerical values of all data points in a set and dividing by the number of data points in the set.
Source: Item 19 — Financial Performance Representations (FDD pages 74–78)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the 'average' for financial performance representations is calculated by adding all the numerical values in a data set and then dividing by the number of data points in that set. This is a standard arithmetic mean. This calculation method is applied to the gross sales figures presented in Item 19. These figures are derived from sales reports submitted by Annex Brands centers, but these reports are unaudited, and Annex Brands has not independently verified their accuracy.
Annex Brands provides financial performance representations based on data from franchised standard and flex retail centers. For example, Chart 1 details the annual gross sales for the fiscal year ended September 30, 2024, for centers in operation for at least 12 months that attended the 2023 National Convention. This chart shows the average annual gross sales for all franchised centers (316 centers) was $407,000. The average annual gross sales for the upper 50% of franchised centers (158 centers) was $574,000, and the average annual gross sales for the lower 50% of franchised centers (158 centers) was $240,000.
Chart 2 presents annual gross sales data for the fiscal year ended September 30, 2024, for a broader set of 528 standard and flex retail centers in operation for at least 12 months. The average annual gross sales for all franchised centers was $378,000. For the upper 50% (264 centers), the average was $533,000, and for the lower 50% (264 centers), the average was $223,000. It is important to note that these gross sales figures do not reflect costs such as cost of sales, payroll, rent, or income taxes. Prospective franchisees should also be aware that Annex Brands may add exclusions to the gross sales calculation, and the mix of services offered by each center can vary, impacting potential sales. Annex Brands emphasizes that individual results may differ and there is no assurance of achieving similar sales figures.