What is the estimated range for deposits and pre-paid expenses for an Annex Brands franchise?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure (1) | Amount (2) | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Deposits and pre-paid | $2,000 - $20,000 | As agreed | As incurred | Us and suppliers you |
| expenses (15) | choose |
Note 15: Deposits may vary from location to location. Some utility deposits may be refundable after a designated period. The landlord may require you to pay a security deposit and the 1st month's rent in advance. The security deposit will depend on the size of the facility, location and other factors (for example, 1,000 square feet at $2 per square foot is a deposit of $2,000. The deposits payable to us in this range include: a $10,500 to $15,000 deposit for a new standard, flex or express retail center, or a $2,000 to $15,000 deposit for a conversion standard or flex retail center, to apply to the cost of shipping fixtures and equipment to your standard, flex or express retail center; and a $3,000 deposit, to apply to the cost of building permits for a new standard or flex retail center (included in low and high ranges), a conversion standard or flex retail center (included in high range only), or a new express retail center (i
Source: Item 7 — Estimated Initial Investment (FDD pages 32–39)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the estimated range for deposits and pre-paid expenses is between $2,000 and $20,000. These expenses are paid as agreed upon and as incurred to Annex Brands and suppliers chosen by the franchisee. These deposits may vary depending on the location. Some utility deposits may be refundable after a designated period.
The landlord may require a security deposit and the first month's rent in advance. The security deposit amount will depend on factors such as the size and location of the facility. For example, a 1,000 square foot space at $2 per square foot would require a $2,000 deposit.
The deposits payable to Annex Brands include a $10,500 to $15,000 deposit for a new standard, flex, or express retail center, or a $2,000 to $15,000 deposit for a conversion standard or flex retail center. This deposit applies to the cost of shipping fixtures and equipment to the retail center. Additionally, there is a $3,000 deposit to cover the cost of building permits for a new standard or flex retail center (included in both the low and high ranges), a conversion standard or flex retail center (included in the high range only), or a new express retail center.