What is the deadline for an Annex Brands converted center to become operational after the agreement is signed?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Center; or
- g) $5,000 if Franchisee already owns and operates at least 1 Center or 1 Commercial Logistics Center and this Agreement is for a standard Center or flex Center that will be converted from a qualifying existing business providing the same services to the public; provided that the Center must be operational within 365 days after this Agreement is signed and must be owned and operated by Franchisee for a minimum of 1 year thereafter; and provided further that if the Center is sold before the completion of 1 year of operation, Franchisee must pay to Franchisor the discounted amount of the initial franchise fee ($30,000) upon sale of th
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 FDD, an Annex Brands franchisee converting an existing business into a standard or flex center has 365 days from the date the Franchise Agreement is signed to become operational. This requirement applies if the franchisee receives a discounted initial franchise fee for converting their existing business.
Specifically, if a franchisee already owns and operates at least one Annex Brands Center or Commercial Logistics Center and is converting a qualifying existing business, they may pay an initial franchise fee of $5,000. To qualify for this reduced fee, the converted center must be operational within 365 days of signing the Franchise Agreement. Additionally, the franchisee must own and operate the center for at least one year after it becomes operational.
If the franchisee sells the Annex Brands center before the one-year operational period is complete, they must pay Annex Brands the difference between the discounted initial franchise fee and the standard initial franchise fee of $30,000. This condition ensures that franchisees who receive a discount for converting an existing business operate the franchise for a reasonable period, benefiting both the franchisee and Annex Brands.