When is the initial franchise fee due for a standard Annex Brands retail center?
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.
If you already own and operate one of our retail centers or one of our Commercial Logistics Centers, and if an existing business qualifies (see below) for conversion to one of our retail centers as your 2nd or further additional center, we will discount the initial franchise fee by 85.7% ($30,000), and you will pay us a $5,000 initial franchise fee. An additional VetFran discount is not available in this situation.
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.
Annex Brands offers a 25% discount ($8,750) off the initial franchise fee to honorably discharged veterans who meet their requirements under the International Franchise Association's VetFran Program, reducing the fee to $26,250. A 50% discount ($17,500) is available to existing Annex Brands retail center or Commercial Logistics Center owners for their second or subsequent retail center, bringing the fee down to $17,500. If the existing owner is also a qualifying veteran, they can receive an additional 25% discount ($4,375), further reducing the fee to $13,125.
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 $17,500 fee, plus a $4,000 conversion training fee. Qualifying veterans receive an additional 25% discount ($4,375), lowering the initial franchise fee to $13,125. In some cases, Annex Brands may offer special venue or conversion programs that waive or discount the initial franchise fee, or provide credits based on the business's age, venue, and sales volume. If a franchisee already owns an Annex Brands location and converts an existing business for their second location, the initial fee is $5,000, and no additional VetFran discount applies.