What is the deadline for Annex Brands to prepare an unaudited report of the operation of the fund annually?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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All retail franchisees and any retail company-owned businesses contribute equally to the fund on a weekly basis. Contributions are 2% of weekly Gross Receipts. We may require you to make payments at an interval as established by us. We will administer the fund. The fund is not audited. We will prepare an unaudited report of the operation of the fund annually within 90-120 days after each fiscal year end, and on your written request, we will make the report available to you. We may use contributions to the fund and associated earnings for soliciting the sale of franchises. Other than reimbursement for reasonable costs and overhead incurred in activities related to the administration or direction of the fund, neither we nor any affiliate will receive any payment for providing products or services to the fund. If we spend more than the contributions accumulated in the fund during any fiscal year, we will have the right to receive, on demand, reimbursement from the fund in later years to the extent of the excess expenditure. If any contributions to the fund, including any associated earnings, are not spent in the fiscal year in which they accrue, they will remain in the fund for use in following years. We reserve the right to terminate the fund at any time, but we will not do so until all monies in the fund have been expended for the purposes described in the franchise agreement.
We are not required to spend any amount from the fund, or any amount from any other source, on marketing, advertising, or promotions in your geographic area.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 45–62)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, Annex Brands will prepare an unaudited report of the operation of the marketing fund annually. This report will be available within 90 to 120 days after the end of each fiscal year. Upon a franchisee's written request, Annex Brands will provide the report to the franchisee.
Annex Brands' fiscal year ended on September 30, 2024. The report includes how the marketing funds were used. For example, 4% was used for soliciting the sale of franchises, 14% for the production of marketing, advertising, and promotional materials, 19% for internet, website, and public relations, 25% for administrative expenses, and 38% for the Matching Funds Advertising Program.
This means that a franchisee can request to see how the marketing funds, to which they contribute 2% of their weekly gross receipts, are being spent by Annex Brands. The franchisee must make the request in writing. The report will be available between 90 and 120 days after the close of Annex Brands' fiscal year.