How does Annex Brands define the term "average" in the context of financial performance?

According to Annex Brands' 2025 Franchise Disclosure Document, the term "average" in the context of financial performance is calculated by adding the numerical values of all data points in a set and dividing by the number of data points in the set. This is a standard statistical calculation.

Annex Brands provides average annual gross sales figures in Item 19, based on data from franchised standard and flex retail centers. For example, Chart 1 shows that the average annual gross sales for all 316 franchised centers that met specific criteria was $407,000. These averages are used to give prospective franchisees an idea of potential revenue, but Annex Brands also provides ranges and medians to offer a more complete picture of performance.

It is important to note that these figures are based on self-reported data from franchisees and have not been independently verified by Annex Brands. Additionally, gross sales do not reflect the costs of sales, payroll, rent, or other operating expenses, which a franchisee will need to consider when evaluating potential profitability. Annex Brands encourages prospective franchisees to conduct their own independent investigation and consult with business advisors before signing the franchise agreement.