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For an Annex Brands franchise, does the location of the business in an office building affect initial fees?

Annex_Brands Franchise · 2025 FDD

Answer from 2025 FDD Document

We will consider the following factors, among others, to determine if an express retail center is appropriate:

    1. Whether the business will be in an office building, airport, convention center, hotel, supermarket, shopping mall or other public building;

Source: Item 5 — Initial Fees (FDD pages 18–24)

What This Means (2025 FDD)

According to Annex Brands's 2025 Franchise Disclosure Document, the location of the business, including whether it is in an office building, is a factor that Annex Brands considers when determining if an express retail center is appropriate. However, the FDD does not state that the location of the business affects the initial franchise fee amount.

The initial franchise fee for a standard and flex retail center is $35,000, but there are circumstances that could change the amount of the initial franchise fee. For example, if the franchisee is an honorably discharged veteran, they may receive a 25% discount ($8,750), making the initial franchise fee $26,250. If the franchisee already owns and operates one of Annex Brands's retail centers or Commercial Logistics Centers, they will receive a 50% discount ($17,500) and pay an initial franchise fee of $17,500 for their 2nd or further additional retail center. If the franchisee is an honorably discharged veteran in this situation, they will receive an additional 25% discount ($4,375) and pay an initial franchise fee of $13,125.

For an express retail center, the initial franchise fee is $17,500, but if the franchisee is an honorably discharged veteran, they will receive a 25% discount ($4,375) and pay an initial franchise fee of $13,125. If the franchisee is assuming the operation of an existing express retail center by transfer, they will not pay an initial franchise fee. However, the franchisee and/or the selling franchisee will pay a transfer fee. If the franchisee already owns and operates one of Annex Brands's retail centers or one of their Commercial Logistics Centers, and if an existing business qualifies for conversion to one of their retail centers as their 2nd or further additional center, Annex Brands will discount the initial franchise fee by 85.7% ($30,000), and the franchisee will pay a $5,000 initial franchise fee. An additional VetFran discount is not available in this situation.

In summary, while the FDD mentions that Annex Brands considers whether the business will be in an office building, airport, convention center, hotel, supermarket, shopping mall, or other public building when determining if an express retail center is appropriate, it does not explicitly state that the location affects the initial franchise fee. The initial franchise fee amount is affected by other factors, such as veteran status, if the franchisee already owns and operates one of Annex Brands's retail centers or Commercial Logistics Centers, or if the franchisee is assuming the operation of an existing express retail center by transfer.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.