factual

What happens if an Annex Brands franchisee changes their financial institution or account?

Annex_Brands Franchise · 2025 FDD

Answer from 2025 FDD Document

In accordance with the franchise agreement between me and Annex Brands, Inc. ("COMPANY") and all other agreements between me and COMPANY or its affiliates, I hereby authorize COMPANY to withdraw funds by initiating entries to my account at the financial institution indicated above ("BANK"), and to initiate adjustments for any erroneous transactions, if necessary. Each Wednesday after the close of business or at such other interval established by COMPANY. I agree to submit a completed Unit Sales Report ("Report") to COMPANY each Saturday, after the close of business and before midnight, for the week ending that Saturday, or at such other interval established by COMPANY. COMPANY agrees that the amount due on the Report for royalty fees, marketing fees, and any other fees (but not national convention participation deposits or technology fees), including but not limited to fees for additional email accounts and insurance premiums, will be the amount withdrawn from my account on the following Wednesday or at such other interval established by COMPANY, unless COMPANY notifies me of an adjusted amount. National convention participation deposits and technology fees will be withdrawn each Tuesday from my account after the close of business or at such other interval established by COMPANY. I further authorize COMPANY to initiate entries for any amounts owed by me to COMPANY or its affiliates, including but not limited to amounts owed for Association fees and assessments, expenses, equipment lease or rental payments and/or supplies payments, purchases from COMPANY and/or its affiliates, interest, late fees, or any other indebtedness to COMPANY or its affiliates, on prior written notice to me. I authorize BANK to accept all entries by COMPANY to my account.

Source: Item 22 — Contracts (FDD pages 109–110)

What This Means (2025 FDD)

The 2025 Annex Brands Franchise Disclosure Document states that as part of the franchise agreement, franchisees authorize Annex Brands to withdraw funds from their designated financial institution account for various fees and payments. This authorization covers royalty fees, marketing fees, and other fees, excluding national convention participation deposits or technology fees, which are withdrawn on Wednesdays. National convention participation deposits and technology fees are withdrawn each Tuesday.

Additionally, Annex Brands is authorized to withdraw amounts owed for Association fees, expenses, equipment lease or rental payments, supplies, purchases from Annex Brands or its affiliates, interest, late fees, or any other indebtedness, provided that prior written notice is given to the franchisee. The franchisee authorizes their bank to accept these entries made by Annex Brands to their account.

The FDD excerpt does not explicitly detail the procedure a franchisee must follow to change their designated financial institution or account. It is important for a prospective franchisee to clarify with Annex Brands the exact steps and notification process required to update this banking information to ensure uninterrupted and accurate fee withdrawals.

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.