In an Annex Brands franchise transfer, who is responsible for paying the fees charged by the Escrow Agent?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Franchisee and the transferee must use the services of a third-party escrow company, title company, or escrow/closing attorney ("Escrow Agent") to administer certain aspects of the transfer process including the exchange of monies, execution of transfer documents, and other related items. The fees charged by the Escrow Agent (typically $1,000 to $4,000, depending on documents required by the locality and other factors) must be paid by Franchisee and/or the transferee. Franchisee and/or transferee must notify Franchisor of the Escrow Agent's contact information, and copies of fully executed escrow instructions be on file with Franchisor before transferee attends initial training. Franchisee and transferee must authorize Escrow Agent to release to Franchisor copies of any documents related and/or submitted to Escrow Agent for t
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, in the event of a franchise transfer, either the franchisee, the transferee, or both are responsible for covering the fees charged by the Escrow Agent. These fees typically range from $1,000 to $4,000, but the exact amount depends on the documents required by the locality and other factors influencing the transfer process.
This means that prospective Annex Brands franchisees need to be aware of this potential cost when considering selling their franchise. The cost can vary depending on location-specific requirements. It is important for both the seller (franchisee) and the buyer (transferee) to discuss and agree upon who will bear this expense during the negotiation phase of the transfer.
Annex Brands requires that they be notified of the Escrow Agent's contact information and that copies of the fully executed escrow instructions are on file with them before the transferee attends initial training. Additionally, both the franchisee and transferee must authorize the Escrow Agent to release copies of any documents related to the transfer to Annex Brands. This ensures that Annex Brands remains informed and has access to all relevant documentation throughout the transfer process.