What is the initial franchise fee for Annex Brands?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure (1) | Amount (2) | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Initial franchise fee (3) | $17,500 | Lump sum | On signing franchise agreement | Us |
| Fixtures | $0 - $40,000 | Lump sum | Before opening | Us |
| Mailboxes | $0 - $16,000 | Lump sum | Before opening | Us |
| Package lockers (4) | $0 - $3,500 | Lump sum | Before opening | Us |
| Flooring | $0 - $9,000 | Lump sum | Before opening | Us |
| Interior signage (5) | $1,000 - $2,500 | Lump sum | Before opening | Us or suppliers you choose |
| Exterior Signage (5) | $6,000 - $8,000 | Lump sum | Before opening | Us or suppliers you choose |
| Construction services (6) | $0 - $60,000 | As agreed | Before opening | Us or substitute licensed contractor |
| Construction consultation fee, if applicable (7) | (7) | Before construction begins | Before opening | Us |
| Equipment (8) | $0 - $6,500 | As agreed | Before opening | Us or suppliers you choose |
| Computer hardware, and software programs and licenses (9) | $250 - $13,000 | Lump sum | Before or at initial training | Software: us and suppliers Hardware: us or suppliers you choose |
| Initial inventory (10) | $0 - $7,000 | Lump sum | Before opening | Us or suppliers you choose |
| Insurance (11) | $2,500 - $7,000 | As agreed | As incurred | Insurance company |
| Online financial training portal license and administrative fee | $330 | Lump sum | On signing franchise agreement | Us |
| Conversion training fee | $0 - $4,000 | Lump sum | On signing | Us |
| (12) | franchise agreement | |||
| Travel, lodging and meals | $1,000 - $4,000 | Lump sum | As incurred | Suppliers you |
| for initial training | choose | |||
| New Center/New Owner Marketing Program deposit (13) | $5,500 | Lump sum | Before or at initial training | Us |
| Supplies (14) | $0 - $2,500 | As agreed | As incurred | Us or suppliers your choose |
| Business licenses, | $0 - $1,000 | As agreed | As incurred | Government |
| business permits, etc. | agencies | |||
| Deposits and pre-paid | $2,000 - $20,000 | As agreed | As incurred | Us and suppliers you |
| expenses (15) | choose | |||
| Architect fee (16) | $0 - $6,000 | Lump sum | Before plan preparation | Us |
| Miscellaneous | $0 - $3,000 | As agreed | As incurred | Suppliers, |
| expenditures | employees & others |
Source: Item 7 — Estimated Initial Investment (FDD pages 32–39)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the initial franchise fee varies depending on the type of retail center. For a new standard, flex, or express retail center, the initial franchise fee is $17,500. However, for a conversion standard or flex retail center, the initial franchise fee is $35,000. This fee is paid in a lump sum when signing the franchise agreement and is payable to Annex Brands.
It is important to note that Note 3 in Item 7 provides more information about possible discounts to the initial franchise fee and information on the circumstances under which a portion of the initial franchise fee may be refundable. If a franchisee is assuming the operation of an existing standard, flex, or express retail center by transfer, they will pay Annex Brands a transfer fee instead of the initial franchise fee.
Prospective franchisees should carefully review Item 5 of the FDD for details on discounts and refund conditions related to the initial franchise fee. Understanding these conditions is crucial for making informed financial decisions when investing in an Annex Brands franchise.