For how long must the Annex Brands Center be owned and operated by the franchisee after becoming operational?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Center; or
- g) $5,000 if Franchisee already owns and operates at least 1 Center or 1 Commercial Logistics Center and this Agreement is for a standard Center or flex Center that will be converted from a qualifying existing business providing the same services to the public; 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 ($30,000) upon sale of the Center; or
-
- Initial Franchise Fee for an Express Center. If this Agreement is for an express Center, Franchisee will pay to Franchisor an initial franchise fee of $17,500, or $13,125 if the 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 ($4,375) upon sale of
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, if a franchisee already owns and operates at least one Annex Brands Center or Commercial Logistics Center and is opening either a standard or flex Annex Brands Center converted from an existing business providing the same services, the new center must be owned and operated by the franchisee for a minimum of one year after becoming operational. The center must be operational within 365 days after the franchise agreement is signed.
If the Annex Brands center is sold before the completion of the one-year operation period, the franchisee must pay Annex Brands the discounted amount of the initial franchise fee, which is $30,000, upon the sale of the center. For an express center, the franchisee must pay Annex Brands a discounted initial franchise fee of $4,375 if the center is sold before the completion of one year of operation.
This condition ensures that franchisees are committed to establishing and running the Annex Brands business for a reasonable period before considering a sale. This protects the brand's reputation and the investment made by Annex Brands in setting up the franchise. It also prevents franchisees from quickly flipping the business without contributing to its long-term success.