When is the deposit for shipping fixtures and equipment for an Annex Brands center required?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
it deposit.
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- Purchase from suppliers approved or designated by Franchisor (which may include solely Franchisor and/or its affiliates) all required trade dress fixtures, furnishings and equipment for the Center, it being agreed and acknowledged by Franchisee that: (a) Franchisee will be required to pay Franchisor a $10,500 to $15,000 deposit for a new standard, flex or express Center, or a $2,000 to $15,000 deposit for a conversion standard or flex Center (based on the geographical location of the Center, and the type and amount of fixtures and equipment needed), before or at initial training, to cover the cost of shipping fixtures and equipment to Franchisee (which deposit is partially refundable if shipping costs less than the deposit), and Franchisee will be required to pay to Franchisor any shipping costs exceeding the deposit promptly after shipping takes place; and (b) Franchisee will be required to purchase from Franchisor a retail fixtures and equipment package (including all trade dress fixtures, mailboxes, package lockers and flooring for a standard, flex or express Center) for a non-refundable amount that varies based on the type and amount of fixtures and equipment needed, the cost of which is payable when Franchisee's orde
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, a franchisee is required to pay a deposit for shipping fixtures and equipment before or at initial training. The deposit amount varies depending on the type of center. For a new standard, flex, or express center, the deposit ranges from $10,500 to $15,000. For a conversion standard or flex center, the deposit ranges from $2,000 to $15,000. The specific amount depends on the geographical location of the center and the type and amount of fixtures and equipment needed.
The deposit covers the cost of shipping the fixtures and equipment to the franchisee. If the actual shipping costs are less than the deposit, the franchisee will receive a partial refund. However, if the shipping costs exceed the deposit, the franchisee is responsible for promptly paying the difference to Annex Brands. In addition to the shipping deposit, franchisees must also purchase a retail fixtures and equipment package from Annex Brands, which includes all trade dress fixtures, mailboxes, package lockers, and flooring. The cost of this package is non-refundable and is payable when the franchisee places the order.
This requirement ensures that Annex Brands franchisees have the necessary fixtures and equipment to establish their centers while adhering to the brand's standards. Prospective franchisees should factor these costs into their initial investment and be prepared to manage potential cost overruns in shipping. Understanding the deposit and purchase requirements is crucial for budgeting and financial planning when opening an Annex Brands franchise.