When is the initial franchise fee due for a standard or flex retail center for Annex Brands?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Standard and Flex Retail Centers. The initial franchise fee is due when you sign the franchise agreement. Except in the circumstances described below, the initial franchise fee is $35,000, and is uniform for all standard and flex retail centers.
If you are an honorably-discharged veteran of the U.S. armed forces and meet our requirements, under our participation in the International Franchise Association's VetFran Program, we will discount the initial franchise fee by 25% ($8,750), and you will pay us a $26,250 initial franchise fee.
If you already own and operate one of our retail centers or one of our Commercial Logistics Centers (see our Commercial Logistics Center Franchise Disclosure Document for more information), we will discount the initial franchise fee by 50% ($17,500), and you will pay us a $17,500 initial franchise fee for your 2nd or further additional retail center. However, if you are an honorably-discharged veteran of the U.S. armed forces and meet our requirements, under our participation in the International Franchise Association's VetFran Program, we will discount the initial franchise fee by an additional 25% ($4,375), and you will pay us an $13,125 initial franchise fee.
If an existing business qualifies (see below) to convert to one of our retail centers, we will discount the initial franchise fee by 50% ($17,500), and you will pay us a $17,500 initial franchise fee and a $4,000 conversion training fee (see more information below). However, if you are an honorably-discharged veteran of the U.S. armed forces and meet our requirements, under our participation in the International Franchise Association's VetFran Program, we will discount the initial franchise fee by an additional 25% ($4,375), and you will pay us an $13,125 initial franchise fee. We may offer special venue programs or special conversion programs to independent owners to convert their businesses to one of our retail centers, and may waive or discount the initial franchise fee, provide credits and other considerations based on their existing businesses' age, venue and sales volume.
Source: Item 5 — Initial Fees (FDD pages 18–24)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the initial franchise fee for a standard or flex retail center is due when you sign the franchise agreement. The standard initial franchise fee is $35,000, but this amount may be reduced in certain circumstances.
For honorably discharged veterans of the U.S. armed forces who meet Annex Brands' requirements under the International Franchise Association's VetFran Program, the initial franchise fee is discounted by 25% ($8,750), resulting in a fee of $26,250. If a franchisee already owns and operates one of Annex Brands' retail centers or Commercial Logistics Centers, the initial franchise fee for a second or subsequent retail center is discounted by 50% ($17,500), resulting in a fee of $17,500. This fee can be further reduced to $13,125 if the franchisee is also a qualified veteran.
If an existing business qualifies for conversion to an Annex Brands retail center, the initial franchise fee is discounted by 50% ($17,500), resulting in a fee of $17,500, along with a $4,000 conversion training fee. This fee can be further reduced to $13,125 for qualified veterans. It is important to note that the initial franchise fee is generally non-refundable, compensating Annex Brands for administrative expenses and lost opportunities, although there are limited circumstances where a partial refund may be available if Annex Brands terminates the franchise agreement before or during initial training.