How will an Annex Brands franchisee pay Advertising Association fees and assessments?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
'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 Agreement).
- E. IN-CENTER TV MARKETING PROGRAM.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees are required to pay Advertising Association fees and assessments via automatic bank draft. The fees are determined as the greater of $150 or 1% of gross receipts per month.
If the Advertising Association has multiple members, it will be managed by a board of directors or a regional licensee. This board or licensee can also impose special assessments on the members periodically. The purpose of the multi-member Association is to facilitate cooperative local or regional advertising and promotional programs.
Annex Brands retains the right to collect these Association fees and assessments, even for single-member Associations, through automatic bank drafts. They can also use these funds to support marketing or advertising efforts across multiple Associations at the local, regional, or national level. Any unspent fees collected by Annex Brands will be rolled over into a fund for future use.