What documentation is required to prove ownership of an existing Annex Brands Center or Commercial Logistics Center to qualify for a reduced initial franchise fee?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee seeks to change less than a controlling ownership interest in the Franchise, Franchisee will provide documentation as required by Franchisor, will execute and deliver all then-current documents required by Franchisor, and will pay to Franchisor the then-current non-transfer ownership change fee only if the documents are not completed and delivered within 90 days after the opening of the Center, after the closing date of escrow on the Center after a transfer, or after the conversion of an existing business to a of the Center.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the specific documentation required to prove ownership of an existing Annex Brands Center or Commercial Logistics Center to qualify for a reduced initial franchise fee is not explicitly detailed in the provided excerpts. However, the FDD does mention the possibility of a reduced initial franchise fee under certain conditions.
Specifically, if a franchisee already owns and operates at least one Annex Brands Center or Commercial Logistics Center, they may be eligible for a reduced initial franchise fee for a new standard or flex Center. The amount of the reduced fee varies: it could be $17,500, $13,125 if the franchisee qualifies for the VetFran discount, or $5,000 if the new center is converted from a qualifying existing business. These reduced fees are contingent on the new center becoming operational within 365 days of signing the agreement and being owned and operated by the franchisee for at least one year. Failure to meet this one-year ownership requirement would require the franchisee to pay the discounted amount back to Annex Brands upon sale of the center.
While the FDD excerpts do not specify the exact documents needed to verify prior ownership, it does state that franchisees will provide documentation as required by Annex Brands for non-transfer ownership changes. A prospective franchisee should directly inquire with Annex Brands about the precise documentation needed to demonstrate ownership and qualify for the reduced initial franchise fee. This might include legal documents, financial records, or other forms of proof deemed acceptable by Annex Brands.