To whom do I make the payment for the Annex Brands initial franchise fee?
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 |
Source: Item 7 — Estimated Initial Investment (FDD pages 32–39)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the initial franchise fee is paid to "Us," meaning Annex Brands, when signing the franchise agreement. The amount of the initial franchise fee varies depending on the type of retail center. For a new standard, flex, or express retail center, the initial franchise fee is $35,000. For a conversion standard or flex retail center, the initial franchise fee is $17,500.
This means that a prospective Annex Brands franchisee must submit the initial franchise fee directly to Annex Brands upon signing the franchise agreement. This fee is a one-time, lump-sum payment. It's important to note that this fee is generally non-refundable, although Item 5 of the FDD may provide information on possible discounts or circumstances under which a portion of the fee may be refundable.
In addition to the initial franchise fee, franchisees will need to budget for other initial investment costs, such as fixtures, mailboxes, signage, construction, equipment, and inventory. These costs are paid to Annex Brands or to third-party suppliers, depending on the specific item. Understanding to whom each payment is made is crucial for managing the initial investment effectively.