When is the insurance payment due for an Annex Brands Express Retail Center?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
. The estimated annual premium for the above coverage is about $1,500 to $5,000. The annual premium for workers' compensation insurance is based on employee payroll. Rates may vary from state to state. Most state insurance carriers offer this coverage subject to an annual minimum premium of about $1,000. In addition to carrying other insurance described in the franchise agreement, you must participate in any Annex Brands group-wide or other designated insurance program that is available to franchisees regarding small parcel, freight, or transit damage and related risks. Premiums generally are from $.55 to $1.75 per $100 of property valuation, packaging and shipping charges. Typically, this expense is passed through to the customer after being marked up by you, is billed to the customer at the time of shipment, and is based on the carrier used, whether the shipment is domestic or international, the declared value of the items tendered for shipping and the packaging and shipping charged to the customer. In our sole discretion, we may increase the rate if you have a high number of claims due to improper packaging and shipping standards (generally, $0.72 to $2.28 per $100 of property valuation, shipping and packaging charges) after at least 15 days' notice to you. Premiums and insurance programs are subject to change after at least 15 days' notice to yo
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 timing of insurance payments for an Express Retail Center is not explicitly detailed. However, the document provides an estimate of annual insurance premiums, suggesting that these payments are typically made on an annual basis. The estimated annual premium for the required coverage ranges from approximately $1,500 to $5,000, though this can vary by state.
Beyond the general annual premium, Annex Brands franchisees may also need to participate in a group-wide insurance program covering small parcel, freight, or transit damage. Premiums for this coverage are typically between $.55 and $1.75 per $100 of property valuation, packaging, and shipping charges. This particular expense is usually billed to the customer at the time of shipment and marked up by the franchisee.
Given the lack of specific due dates in the FDD, prospective Annex Brands franchisees should clarify the exact payment schedules for all required insurance policies with the franchisor. Understanding these payment terms is crucial for managing cash flow and ensuring continuous coverage, which is a requirement of the franchise agreement.