When is the initial franchise fee due and payable to Annex Brands?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
the Center.
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; 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 ($21,875) upon sale of the Center; or
- e) $17,500 if Franchisee already owns and operates at least 1 Center or 1 Commercial Logistics Center; 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 ($17,500) upon sale of the Center; or
- f) $13,125 if Franchisee already owns and operates at least 1 Center or 1 Commercial Logistics Center; and the 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 ($21,875) upon sale of the Center; or
- g) $5,000 if Franchisee already owns and operates at least 1 Center or 1 Commercial Logistics Center and this Agreement is for a standard Center or flex Center that will be converted from a qualifying existing business providing the same services to the public;
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 and any applicable conversion training fee are due and payable when the Franchise Agreement is executed. This means that a prospective franchisee must pay the fee at the time of signing the agreement to become a franchisee.
The initial franchise fee varies depending on the type of center. For a standard or flex center, the fee is $35,000, but it may be reduced to $26,250 for those who qualify for the VetFran discount. For a center converted from an existing business, the initial franchise fee is $17,500, along with a $4,000 conversion training fee. If a franchisee already owns and operates at least one Annex Brands center, the conversion fee for a standard or flex center is $5,000. For an express center, the initial franchise fee is $17,500, or $13,125 if the franchisee qualifies for the VetFran discount.
Annex Brands' policy is that the initial franchise fee is considered fully earned upon payment and is generally non-refundable. This compensates Annex Brands for administrative costs, expenses incurred in entering the agreement, and the lost opportunity to franchise with someone else. However, there is an exception: if the franchisee decides not to continue before initial training, and Annex Brands approves the termination and determines a refund is due, a refund of the initial franchise fee may be issued, less certain deductions.