Who directs the marketing and promotional programs of the Annex Brands marketing fund?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
A. BY FRANCHISOR. Recognizing the value of marketing to the goodwill and public image of Centers, Franchisor maintains, and administers a marketing fund (the "Fund") for such marketing as Franchisor, in its sole discretion, deems necessary or appropriate. Franchisor directs all marketing and promotional programs of the Fund, with sole discretion over the creative concepts, materials, endorsements, and media used for the programs, the composition of all geographic territories and market areas for the development and implementation of programs, and the placement and allocation of all marketing. Any businesses owned by Franchisor or any of its affiliates will contribute to the Fund on the same basis as Franchisee.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, Annex Brands directs all marketing and promotional programs of the marketing fund. This includes having sole discretion over the creative concepts, materials, endorsements, and media used for the programs. Annex Brands also has control over the composition of geographic territories and market areas for the development and implementation of programs, as well as the placement and allocation of all marketing efforts.
This means that as an Annex Brands franchisee, you will be required to participate in marketing programs directed by the franchisor. While franchisees may have the right to set their own prices, they must honor all coupons, price-reduction promotions, and other promotions/programs as directed by Annex Brands. However, Annex Brands does not guarantee that marketing expenditures will be proportionate or equivalent to contributions from Centers in any specific geographic area.
Annex Brands maintains and administers a marketing fund used for marketing activities that they deem necessary or appropriate. Any businesses owned by Annex Brands or its affiliates will contribute to the Fund on the same basis as franchisees. The fund is intended to maximize general recognition and patronage of the Marks and Centers for the benefit of Annex Brands and all Centers.