What happens if an Annex Brands franchisee fails to participate in a local or regional association?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Advertising association fee | Monthly, the greater of $150 or 1% of Gross Receipts (2) | 10 days after end of each calendar month or as otherwise provided by local or regional association bylaws | You must participate in a local or regional association. The board of directors of your association may also periodically impose special assessments on its members. You pay fees by automatic bank draft, either to the association or directly to us, at our option. (3) |
Source: Item 6 — OTHER FEES (FDD pages 24–32)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, franchisees must participate in a local or regional advertising association. The franchisee pays an advertising association fee, which is the greater of $150 or 1% of gross receipts monthly. This fee is due 10 days after the end of each calendar month, or as otherwise provided by local or regional association bylaws. The board of directors of the association may also periodically impose special assessments on its members.
The FDD states that franchisees must participate in a local or regional association, but it does not explicitly state the consequences of failing to do so. It is important to note that the franchisee pays fees by automatic bank draft, either to the association or directly to Annex Brands, at their option.
Since the document does not specify the repercussions for non-participation, prospective Annex Brands franchisees should inquire with the franchisor about the specific consequences of failing to participate in a local or regional association. This information is crucial for understanding the full scope of the franchisee's obligations and potential penalties.