Can Annex Brands elect to collect Advertising Association fees and assessments from franchisees?

According to Annex Brands' 2025 Franchise Disclosure Document, Annex Brands, in its sole discretion, can elect to collect Advertising Association fees and/or assessments from franchisees by automatic bank draft. Annex Brands can also elect to use these fees and/or assessments to fund multiple-Association local, regional, or national marketing, or advertising, efforts.

For a franchisee, this means that Annex Brands has the authority to manage the collection and use of advertising fees. This includes the option to pool resources from multiple franchise locations for broader marketing campaigns. The fees and assessments will be the greater of $150 or 1% of Gross Receipts per month.

Any Association fees and/or assessments collected by Annex Brands that are not spent in the year in which they are collected will roll over into the Fund, as detailed in Subsection 10.A of the Franchise Agreement. This provides some assurance that advertising funds are not simply absorbed by the franchisor but are instead reinvested in marketing efforts, although the specific details of how the "Fund" is managed would be important for a prospective franchisee to understand.