What is the initial franchise fee for an Annex Brands Center that is converted from a qualifying existing business?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
8. FEES
- A. INITIAL FRANCHISE FEE; CONVERSION TRAINING FEE. The initial franchise fee and any applicable conversion training fee are due and payable when this Agreement is executed and are non-refundable except as described below:
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- Initial Franchise Fee for a Standard Center or Flex Center. If this Agreement is for a standard Center or flex Center, Franchisee will pay to Franchisor an initial franchise fee of:
- a) $35,000; or
- b) $26,250 if Franchisee qualifies for the VetFran discount; provided that the Center must be operational within 365 days after this Agreement is signed, and must be owned and operated by Franchisee for a minimum of 1 year thereafter; and provided further that if the Center is sold before the completion of 1 year of operation, Franchisee must pay to Franchisor the discounted amount of the initial franchise fee ($8,750) upon sale of the Center; or
- c) $17,500 if this Agreement is for a Center that will be converted from a qualifying existing business providing the same services to the public; provided, however, that Franchisee will also pay to Franchisor a conversion training fee of $4,000; and provided further that the Center must be operational within 365 days after this Agreement is signed and must be owned and operated by Franchisee for a minimum of 1 year thereafter; and provided further that if the Center is sold before the completion of 1 year of operation, Franchisee must pay to Franchisor the discounted amount of the initial franchise fee ($17,500) upon sale of the Center; or
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- d) $13,125 if this Agreement is for a Center that will be converted from a qualifying existing business providing the same services to the public and the Franchisee qualifies for the VetFran discount; provided, however, that Franchisee will also pay to Franchisor a conversion training fee of $4,000;
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the initial franchise fee for a standard or flex Annex Brands Center converted from a qualifying existing business is $17,500. In addition to the initial franchise fee, the franchisee must also pay a conversion training fee of $4,000, bringing the total initial fees to $21,500. The existing business must provide the same services to the public to qualify for the conversion fee.
There are specific conditions attached to this reduced fee. The converted Annex Brands Center must be operational within 365 days of signing the franchise agreement. Furthermore, the franchisee must own and operate the Center for a minimum of one year after it becomes operational. If the franchisee sells the Center before completing one year of operation, they must pay Annex Brands the discounted amount of the initial franchise fee, which is $17,500.
Annex Brands also offers a VetFran discount. If a franchisee converting an existing business qualifies for the VetFran discount, the initial franchise fee is reduced to $13,125, but the $4,000 conversion training fee still applies. If the franchisee sells the Center before the completion of 1 year of operation, Franchisee must pay to Franchisor the discounted amount of the initial franchise fee ($21,875) upon sale of the Center.
It is important to note that these fees are generally non-refundable. This means that if the franchisee decides not to proceed with the franchise after paying the initial fee, they may not receive a refund, except under specific conditions outlined in the FDD.