When is the construction consultation fee due for an Annex Brands standard or flex retail center?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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Note 7: We will designate a contractor for your use who is familiar with our requirements. If you use our designated contractor, you do not pay this fee. If you want to use, and we approve, a substitute contractor, you must pay us a construction consultation fee of $2,500 before construction begins. In addition, if your contractor does not supply a 24-hour access security gate and digital keypad entry, you may have to purchase it on your own (see Note 6 above). Any substitute contractor must have a state license and be insured as required by law. See Items 5 and 8 for further detail
Source: Item 7 — Estimated Initial Investment (FDD pages 32–39)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, if a franchisee for a standard or flex retail center chooses to use a contractor other than the one designated by Annex Brands, and if Annex Brands approves that substitute contractor, the franchisee must pay a construction consultation fee of $2,500. This fee is due before construction begins.
This policy ensures that Annex Brands has some oversight over the construction process, even if the franchisee uses their own contractor. By charging a consultation fee, Annex Brands is compensated for the time and resources it spends reviewing and approving the franchisee's chosen contractor and ensuring that the construction meets Annex Brands' standards.
It is important to note that if the franchisee uses Annex Brands' designated contractor, this fee is waived. This provides an incentive for franchisees to use the designated contractor, who is already familiar with Annex Brands' requirements. Additionally, the FDD stipulates that any substitute contractor must have a state license and be insured as required by law, adding another layer of protection for Annex Brands and the franchisee.