Can Annex Brands change the payment interval for marketing fund contributions?

According to Annex Brands' 2025 Franchise Disclosure Document, Annex Brands has the authority to modify the payment schedule for marketing fund contributions. Currently, all retail franchisees and company-owned retail locations contribute to the marketing fund on a weekly basis, with contributions set at 2% of weekly Gross Receipts. However, Annex Brands retains the right to require franchisees to make these payments at different intervals, as determined by them.

This provision grants Annex Brands flexibility in managing the marketing fund and adapting to changing business needs. For a franchisee, this means that while the current payment schedule is weekly, Annex Brands could decide to switch to monthly, quarterly, or another interval. This change could impact a franchisee's cash flow management, requiring them to adjust their budgeting and financial planning accordingly.

It is important to note that while Annex Brands can change the payment interval, the contribution amount (2% of Gross Receipts) is specified. Franchisees should stay informed of any changes to the payment schedule and factor this potential variability into their financial projections. Franchisees should also maintain open communication with Annex Brands to understand the reasons behind any changes to the payment interval and how it will affect their business operations.