What costs are NOT reflected in the Gross Sales figures reported for Annex Brands franchises?

According to Annex Brands' 2025 Franchise Disclosure Document, the Gross Sales figures reported do not account for several significant expenses a franchisee will incur. Specifically, the reported Gross Sales do not reflect the cost of sales, which includes the direct expenses associated with providing the services and products. Additionally, payroll and related expenses, such as salaries, wages, and employee benefits, are not factored into the Gross Sales figures.

Furthermore, the figures exclude rent, office expenses, amortization, depreciation, income taxes, and debt service obligations. These are all crucial operating costs that a franchisee must consider when evaluating the potential profitability of an Annex Brands franchise. Amortization and depreciation represent the reduction in value of assets over time, while debt service obligations refer to the payments required to service any loans taken out to finance the business.

In essence, the Gross Sales figures provide a picture of revenue before these substantial expenses are deducted. A prospective Annex Brands franchisee needs to carefully consider these costs, conduct thorough due diligence, and create a detailed financial model to estimate their potential net income and overall financial viability. Consulting with financial and legal advisors is highly recommended to fully understand the financial implications of investing in an Annex Brands franchise.