What is the building permit deposit required for an Annex Brands standard, flex, or express Center?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
hitect fee.
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- Pay a $3,000 deposit for a standard, flex or express Center to Franchisor before or during initial training, which Franchisor agrees to use to pay the cost of building permits for the Center; provided that Franchisor will refund any underage to Franchisee or bill any overage to Franchisee. If the Center will be converted from a qualifying existing business providing the same services to the public, building permits may not be required and Franchisee will not be required to pay a building per
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, a franchisee must pay a $3,000 deposit to Annex Brands for a standard, flex, or express Center before or during initial training. Annex Brands will use this deposit to cover the cost of building permits for the Center.
If the actual cost of the building permits is less than the $3,000 deposit, Annex Brands will refund the difference to the franchisee. Conversely, if the cost exceeds the deposit, Annex Brands will bill the franchisee for the additional amount. This ensures that the franchisee covers the actual expenses associated with obtaining the necessary building permits.
However, if the Annex Brands Center is converted from a qualifying existing business that already provides similar services, building permits may not be required. In such cases, the franchisee will not be required to pay the $3,000 building permit deposit. This exception can significantly reduce the initial investment for franchisees who choose to convert an existing business into an Annex Brands franchise.