What is the initial franchise fee for a standard or flex retail center Annex Brands franchise?
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) | $35,000 | Lump sum | On signing franchise agreement | Us |
| Fixtures | $40,000 - $50,000 | Lump sum | Before opening | Us |
| Mailboxes | $14,000 - $16,000 | Lump sum | Before opening | Us |
| Package lockers (4) | $3,500 | Lump Sum | Before opening | Us |
| Flooring | $6,000 - $9,000 | Lump sum | Before opening | Us |
| Interior signage (5) | $1,000 - $2,500 | Lump sum | Before opening | Us or supplie |
Source: Item 7 — Estimated Initial Investment (FDD pages 32–39)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, the initial franchise fee for a new standard or flex retail center is $49,500. This fee is paid in a lump sum when signing the franchise agreement. For those converting an existing business to a standard or flex retail center, the initial franchise fee is $35,000, also paid as a lump sum upon signing the franchise agreement.
This initial franchise fee grants the franchisee the right to operate an Annex Brands location under the company's brand name and system. It covers Annex Brands's initial costs in setting up the franchise, including training and support. However, it's important to note that this fee is just one component of the total initial investment, which also includes expenses like fixtures, signage, construction, and initial inventory.
Annex Brands may offer discounts on the initial franchise fee under certain circumstances, as detailed in Item 5 of the FDD. Additionally, a portion of the initial franchise fee may be refundable under specific conditions. If a franchisee is assuming operations of an existing Annex Brands retail center through a transfer, a transfer fee will be paid instead of the initial franchise fee.
Prospective franchisees should carefully consider the initial franchise fee in conjunction with all other startup costs to ensure they have sufficient capital to launch and sustain their Annex Brands business. It is also advisable to review Item 5 of the FDD to understand any potential discounts or refund opportunities related to the initial franchise fee.