To whom is the initial franchise fee paid for an Annex Brands standard or flex retail center?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
.
Note 3: See Item 5 for more information about possible discounts to the initial franchise fee and information on the circumstances under which a portion of the initial franchise fee may be refundable. Initial training is included in the initial franchise fee. If you are assuming the operation of an existing standard, flex or express retail center by transfer, you or the selling franchisee will pay us a transfer fee in lieu of you paying us an initial franchise fee (see Item 6 for more information), and you will pay us a transfer training and processing fee unless you already own and operate one of our retail centers or one of our Commercial Logistics Centers (see Item 5 for more information). If you are converting an existing business to a standard or flex retail center, you will pay us an initial franchise fee, and you will pay us a conversion training fee of $4,000 unless you already own and operate one of our retail centers or one of our Commercial Logistics Centers (see Item 5 and Note 12 of this Item for more information
Source: Item 7 — Estimated Initial Investment (FDD pages 32–39)
What This Means (2025 FDD)
According to the 2025 FDD, the initial franchise fee for a new Annex Brands standard or flex retail center is paid to the franchisor, Annex Brands. The FDD notes that if a franchisee is assuming the operation of an existing standard, flex, or express retail center by transfer, the franchisee or the selling franchisee will pay Annex Brands a transfer fee instead of the initial franchise fee. Similarly, if converting an existing business to a standard or flex retail center, the franchisee will pay Annex Brands an initial franchise fee.
This means that a new Annex Brands franchisee can expect to pay the initial franchise fee directly to Annex Brands when starting a new standard or flex retail center. However, the fee structure changes if the franchisee is taking over an existing location or converting a business, in which case a transfer fee or conversion training fee may apply instead of the initial franchise fee.
Prospective franchisees should carefully review Item 5 and Item 6 of the FDD, as referenced in the provided notes, for detailed information on the specific amounts and conditions related to the initial franchise fee, transfer fee, and conversion training fee. Understanding these fees and the circumstances under which they apply is crucial for accurately estimating the initial investment required to start an Annex Brands franchise.