When is the initial franchise fee due for an Annex Brands franchise?
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 |
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 is due upon signing the franchise agreement. The amount of this fee varies depending on the type of franchise. For a new standard, flex, or express retail center, the initial franchise fee is $17,500. For a new standard or flex retail center, the initial franchise fee is $35,000.
This means that a prospective Annex Brands franchisee must be prepared to pay the full initial franchise fee at the time they formally commit to the franchise agreement. This upfront payment grants the franchisee the right to operate under the Annex Brands system and utilize its trademarks and business model. It's important for potential franchisees to have these funds readily available when they decide to move forward with the franchise.
Annex Brands may offer discounts to the initial franchise fee under certain circumstances, as detailed in Item 5 of the FDD. Additionally, a portion of the initial franchise fee may be refundable under specific conditions. If a franchisee is assuming the operation of an existing retail center through a transfer, they will pay a transfer fee instead of the initial franchise fee. If converting an existing business to an Annex Brands retail center, a conversion training fee of $4,000 is required, unless the franchisee already owns and operates another Annex Brands retail center or a Commercial Logistics Center.