What was the cost of freight for Annex Brands in 2022?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenue: Continuing franchise fees Freight Insurance, customer referrals and other Merchandise and equipment sales Unit franchises sold | $ 14,919,000 | $ 15,167,000 | $ 15,260,000 |
| 2,487,000 | 3,985,000 | 3,594,000 | |
| 6,196,000 | 4,223,000 | 4,179,000 | |
| 661,000 | 775,000 | 634,000 | |
| 673,000 | 387,000 | 428,000 | |
| Total revenue | 24,936,000 | 24,537,000 | 24,095,000 |
| Cost of revenue: Cost of freight Cost of merchandise and equipment sold and direct franchise costs Cost of insurance premiums, claims, customer referrals and other | 2,299,000 | 3,767,000 | 3,367,000 |
| 644,000 | 679,000 | 547,000 | |
| 4,888,000 | 3,173,000 | 3,301,000 | |
| Total cost of revenue | 7,831,000 | 7,619,000 | 7,215,000 |
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the cost of freight for the company in 2022 was $3,367,000. This figure represents the direct expenses Annex Brands incurred for shipping and transportation of goods during that year.
For a prospective franchisee, understanding the franchisor's freight costs can provide insight into the supply chain and logistics aspects of the business. It is important to note that this cost is distinct from the 'Cost of merchandise and equipment sold and direct franchise costs' and 'Cost of insurance premiums, claims, customer referrals and other,' which were $547,000 and $3,301,000 respectively in 2022. These costs, along with the cost of freight, contribute to the total cost of revenue for Annex Brands.
Analyzing these costs over the three years presented (2022, 2023, and 2024) can reveal trends in Annex Brands' operational efficiency and cost management. Franchisees may want to inquire about how these costs are managed and whether there are opportunities for franchisees to leverage the franchisor's logistics network to reduce their own shipping expenses.