To whom is the construction consultation fee paid for an Annex Brands Express Retail Center?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure (1) | Amount (2) | Method of Payment | When Due | To Whom Payment Is To Be Made | |
|---|---|---|---|---|---|
| Initial franchise fee (3) | $35,000 | Lump sum | On signing franchise agreement | Us | |
| Fixtures | $40,000 - $50,000 | Lump sum | Before opening | Us | |
| Mailboxes | $14,000 - $16,000 | Lump sum | Before opening | Us | |
| Package lockers (4) | $3,500 | Lump Sum | Before opening | Us | |
| Flooring | $6,000 - $9,000 | Lump sum | Before opening | Us | |
| Interior signage (5) | $1,000 - $2,500 | Lump sum | Before opening | Us or suppliers you choose | |
| Exterior signage (5) | $6,000 - $8,000 | Lump sum | Before opening | Us or suppliers you choose | |
| Construction services (6) | $70,000 - $90,000 | As agreed | Before opening | Us or substitute licensed contractor | |
| Construction consultation fee, if applicable (7) | (7) | Before construction begins | Before opening | Us | |
| Equipment (8) | $4,000 - $6,500 | As agreed | Before opening | Us or suppliers you choose |
| Type of Expenditure (1) | Amount (2) | Method of Payment | When
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 an Express Retail Center chooses a construction contractor not designated by Annex Brands, and if Annex Brands approves that substitute contractor, the franchisee must pay a construction consultation fee. This fee is paid directly to Annex Brands.
The table provided in Item 7 outlines various expenditures associated with opening an Express Retail Center. It clearly states that the construction consultation fee is paid to Annex Brands before construction begins. This fee is only applicable if the franchisee opts for a contractor other than the one designated by Annex Brands and receives approval for that contractor.
The purpose of this fee is likely to cover Annex Brands' costs of reviewing and approving the franchisee's chosen contractor to ensure they meet the brand's standards and requirements. It also incentivizes franchisees to use the designated contractor, streamlining the construction process and potentially reducing costs.
Prospective franchisees should consider this fee as a potential expense when budgeting for their initial investment, especially if they have a preferred contractor in mind. However, using Annex Brands' designated contractor waives this fee, which could be a more cost-effective option for some franchisees.