How are fees and assessments allocated among members of the Annex Brands Advertising Association?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
aphic area. The fees and additional assessments of the Association will be allocated equitably among members of the Association. The Association fees and assessments will be the greater of $150 or 1% of Gross Receipts per month. The board of directors of the Association, or a regional licensee if there is one, may also periodically impose special assessments on the Association's members. The Association will require Franchisee to pay fees and assessments by automatic bank draft. These fees and assessments are non-refundable and are not collected for any 3rd party. The Association's bylaws will provide for each member to receive an annual accounting of expenditures by the Association. Franchisor, in its sole discretion, may elect to collect Association fees (including single-member Association fees) and/or assessments by automatic bank draft, and/or may elect to use these fees and/or assessments to fund multiple-Association local, regional, or national marketing, or advertising, efforts. Any Association fees and/or assessments collected by Franchisor that are not spent in the year in which they are collected will roll over into the Fund (see Subsection 10.A of this
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, when the Advertising Association has multiple members, the fees and additional assessments are allocated equitably among the members. The minimum monthly fee and assessment is the greater of $150 or 1% of gross receipts. The board of directors of the Association, or a regional licensee if one exists, can also periodically impose special assessments on the members. Franchisees are required to pay these fees and assessments via automatic bank draft. These payments are non-refundable and are not collected for any third party. Each member of the Association will receive an annual accounting of expenditures made by the Association.
Annex Brands, at its discretion, may collect Association fees and assessments, including those from single-member Associations, via automatic bank draft. The company may also use these funds to support local, regional, or national marketing and advertising efforts across multiple Associations. Any Association fees and assessments collected by Annex Brands that are not spent during the year are rolled over into a general fund.
For a franchisee, this means that a portion of their gross receipts (at least 1%) will be dedicated to advertising and promotional activities. The franchisee must participate in the Advertising Association and adhere to its bylaws if there are multiple members. The automatic bank draft ensures consistent payment, but franchisees should be aware that these fees are non-refundable. The annual accounting provides transparency regarding how the Association's funds are being used.