What happens to the money in the marketing fund if Annex Brands terminates it?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to terminate the fund at any time, but we will not do so until all monies in the fund have been expended for the purposes described in the franchise agreement.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 45–62)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, Annex Brands reserves the right to terminate the system-wide marketing fund at any time. However, if Annex Brands chooses to terminate the fund, it is obligated to ensure that all the money within the fund is spent for the purposes outlined in the franchise agreement before the fund is officially terminated.
This means that if Annex Brands decides to discontinue the marketing fund, franchisees can expect that the existing balance will be used for marketing, advertising, and promotional activities as previously defined. This protects franchisees by ensuring that contributions already made to the fund are used as intended rather than being retained by Annex Brands.
This condition provides some assurance to franchisees that their marketing contributions will be used appropriately, even if the fund is discontinued. Prospective franchisees should seek clarification on what specific marketing activities the fund supports and how Annex Brands determines the allocation of funds to ensure it aligns with their expectations.