What is the initial franchise fee for an existing business converting to an Annex Brands retail center?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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 an existing business that qualifies to convert to one of their retail centers is $17,500. This represents a 50% discount ($17,500) off the standard initial franchise fee. In addition to this fee, the converting franchisee must also pay a $4,000 conversion training fee.
However, if the converting franchisee is an honorably discharged veteran of the U.S. armed forces and meets Annex Brands' requirements under the International Franchise Association's VetFran Program, they will receive an additional 25% discount ($4,375) on the initial franchise fee. This would bring the initial franchise fee down to $13,125, with the $4,000 conversion training fee still applicable.
Annex Brands will consider factors such as the location and size of the business, the services offered, the length of time the business has been operating, and the adaptability of the business to the Annex Brands system when determining if a business qualifies for the reduced initial franchise fee. These factors help Annex Brands ensure that the conversion is likely to be successful and that the existing business aligns with their brand standards.
It is important to note that Annex Brands may also offer special venue programs or special conversion programs to independent owners, potentially waiving or further discounting the initial franchise fee and providing other credits based on the existing business's age, venue, and sales volume. This provides flexibility for Annex Brands to attract conversions in specific situations.