To whom is the initial franchise fee paid for an Annex Brands Express Retail Center?
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 |
| Fixtures | $0 - $40,000 | Lump sum | Before opening | Us |
| Mailboxes | $0 - $16,000 | Lump sum | Before opening | Us |
| Package lockers (4) | $0 - $3,500 | Lump sum | Before opening | Us |
| Flooring | $0 - $9,000 | Lump sum | Before opening | Us |
| Interior signage (5) | $1,000 - $2,500 | Lump sum | Before opening | Us or suppliers you choose |
| Exterior Signage (5) | $6,000 - $8,000 | Lump sum | Before opening | Us or suppliers you choose |
| Construction services (6) | $0 - $60,000 | As agreed | Before opening | Us or substitute licensed contractor |
| Construction consultation fee, if applicable (7) | (7) | Before construction begins | Before opening | Us |
| Equipment (8) | $0 - $6,500 | As agreed | Before opening | Us or suppliers you choose |
| Computer hardware, and software programs and licenses (9) | $250 - $13,000 | Lump sum | Before or at initial training | Software: us and suppliers Hardware: us or suppliers you choose |
| Initial inventory (10) | $0 - $7,000 | Lump sum | Before opening | Us or suppliers you choose |
| Insurance (11) | $2,500 - $7,000 | As agreed | As incurred | Insurance company |
| Online financial training portal license and administrative fee | $330 | Lump sum | On signing franchise agreement | Us |
| Conversion training fee | $0 - $4,000 | Lump sum | On signing | Us |
| (12) | franchise agreement | |||
| Travel, lodging and meals | $1,000 - $4,000 | Lump sum | As incurred | Suppliers you |
| for initial training | choose | |||
| New Center/New Owner Marketing Program deposit (13) | $5,500 | Lump sum | Before or at initial training | Us |
| Supplies (14) | $0 - $2,500 | As agreed | As incurred | Us or suppliers your choose |
Source: Item 7 — Estimated Initial Investment (FDD pages 32–39)
What This Means (2025 FDD)
According to the 2025 Annex Brands Franchise Disclosure Document, the initial franchise fee of $17,500 for an Express Retail Center is paid directly to Annex Brands. This payment is made as a lump sum when the franchise agreement is signed.
Beyond the initial franchise fee, Annex Brands franchisees can expect other upfront costs payable to Annex Brands. For example, franchisees pay Annex Brands for fixtures ($0 - $40,000), mailboxes ($0 - $16,000), package lockers ($0 - $3,500), flooring ($0 - $9,000), construction services ($0 - $60,000), equipment ($0 - $6,500), computer software ($250 - $13,000), initial inventory ($0 - $7,000), an online financial training portal license ($330), a New Center/New Owner Marketing Program deposit ($5,500), and supplies ($0 - $2,500). Some of these payments may be made to suppliers chosen by the franchisee instead of directly to Annex Brands.
Understanding to whom payments are made is a key part of assessing the initial investment for an Annex Brands franchise. While the initial franchise fee is non-negotiable and paid directly to Annex Brands, other expenses may offer some flexibility in vendor selection, potentially impacting the overall cost. Prospective franchisees should carefully review Item 7 of the FDD and discuss payment options with the franchisor to fully understand their financial obligations.