What is the initial franchise fee for a standard Annex Brands Center?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
8. FEES
- A. INITIAL FRANCHISE FEE; CONVERSION TRAINING FEE. The initial franchise fee and any applicable conversion training fee are due and payable when this Agreement is executed and are non-refundable except as described below:
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- Initial Franchise Fee for a Standard Center or Flex Center. If this Agreement is for a standard Center or flex Center, Franchisee will pay to Franchisor an initial franchise fee of:
- a) $35,000; or
- b) $26,250 if Franchisee qualifies for the VetFran discount; provided that the Center must be operational within 365 days after this Agreement is signed, and must be owned and operated by Franchisee for a minimum of 1 year thereafter; and provided further that if the Center is sold before the completion of 1 year of operation, Franchisee must pay to Franchisor the discounted amount of the initial franchise fee ($8,750) upon sale of the Center; or
- c) $17,500 if this Agreement is for a Center that will be converted from a qualifying existing business providing the same services to the public; provided, however, that Franchisee will also pay to Franchisor a conversion training fee of $4,000; and provided further that the Center must be operational within 365 days after this Agreement is signed and must be owned and operated by Franchisee for a minimum of 1 year thereafter; and provided further that if the Center is sold before the completion of 1 year of operation, Franchisee must pay to Franchisor the discounted amount of the initial franchise fee ($17,500) upon sale of the Center; or
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- d) $13,125 if this Agreement is for a Center that will be converted from a qualifying existing business providing the same services to the public and the Franchisee qualifies for the VetFran discount; provided, however, that Franchisee will also pay to Franchisor a conversion training fee of $4,000; and provided further that the Center must be operational within 365 days after this Agreement is signed and must be owned and operated by Franchisee for a minimum of 1 year thereafter; and provided further that if the Center is sold before the completion of 1 year of operation, Franchisee must pay to Franchisor the discounted amount of the initial franchise fee ($21,875) upon sale of the Center; or
- e) $17,500 if Franchisee already owns and operates at least 1 Center or 1 Commercial Logistics Center;
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 Annex Brands Franchise Disclosure Document, the initial franchise fee for a standard or flex center is $35,000. However, the FDD outlines several scenarios where this fee may be reduced.
If a franchisee qualifies for the VetFran discount, the initial franchise fee is reduced to $26,250. Additionally, if the agreement is for a center that will be converted from a qualifying existing business providing the same services, the initial franchise fee is $17,500, along with a conversion training fee of $4,000. There is also a reduced fee of $5,000 if the franchisee already owns and operates at least one Annex Brands Center or Commercial Logistics Center and the agreement is for a standard or flex center that will be converted from a qualifying existing business providing the same services.
Several conditions apply to these reduced fees. The center must be operational within 365 days after the franchise agreement is signed and must be owned and operated by the franchisee for a minimum of one year thereafter. If the center is sold before completing one year of operation, the franchisee must pay Annex Brands the discounted amount of the initial franchise fee. These amounts are $8,750 for the VetFran discount, $17,500 for a converted business, and $30,000 if the franchisee already owns and operates an Annex Brands center or Commercial Logistics Center.