What is the condition for any businesses owned by Annex Brands or any of its affiliates to contribute to the Fund?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
A. BY FRANCHISOR. Recognizing the value of marketing to the goodwill and public image of Centers, Franchisor maintains, and administers a marketing fund (the "Fund") for such marketing as Franchisor, in its sole discretion, deems necessary or appropriate. Franchisor directs all marketing and promotional programs of the Fund, with sole discretion over the creative concepts, materials, endorsements, and media used for the programs, the composition of all geographic territories and market areas for the development and implementation of programs, and the placement and allocation of all marketing. Any businesses owned by Franchisor or any of its affiliates will contribute to the Fund on the same basis as Franchisee.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, any businesses owned by Annex Brands or its affiliates will contribute to the marketing fund (the "Fund") on the same basis as a franchisee. This fund is maintained and administered by Annex Brands for marketing activities that they deem necessary or appropriate to promote the goodwill and public image of the Centers. Annex Brands has sole discretion over the marketing and promotional programs of the Fund, including creative concepts, materials, media, geographic territories, market areas, and the placement and allocation of marketing efforts.
This arrangement ensures that Annex Brands and its affiliates are contributing to the marketing efforts in a similar manner to the franchisees. This can be seen as a benefit for franchisees, as it aligns the interests of the franchisor and its affiliates with those of the franchisees in terms of marketing contributions. It also means that Annex Brands is investing in the overall brand and marketing strategy, which can help drive business to individual franchise locations.
Prospective franchisees should consider this aspect of the franchise agreement as a positive sign, indicating that Annex Brands is committed to supporting the brand through marketing efforts and is willing to contribute financially alongside its franchisees. It is important for potential franchisees to understand how the marketing fund is managed and how the contributions are utilized to ensure that the marketing efforts align with their business goals.