How is the Annex Brands marketing fee payable and reported?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
ETING FEES. Franchisee must contribute an amount equal to 2% of Gross Receipts as a marketing fee, payable in the same manner and reported in the same manner as set forth in Subsection 8.B of this Agreement for royalty fees, as a contribution to the Fund specified in Subsection 10.A of this Agreement. In its sole discretion, Franchisor may change Franchisee's schedule for making marketing and promotional fund contributions, and for making related reports of Gross Receipts and other financial information, to an interval established by Franchisor. See Section 10 of this Agreement for other obligations related to advertising.
- D. TECHNOLOGY SERVICES FEE. Beginning after Franchisee (i) opens the Center, (ii) assumes the operation of an existing Center by transfer, or (iii) converts an existing business to a Center, Franchisor will collect from Franchisee as a Technology Services Fee the sum of $16 per week each Tuesday after the close of business, for the previous week ending Saturday, by automatic draft from Franchisee's designated bank account. The fee will be used for support of various technology services that Franchisor may provide to Franchisee in its sole discretion. The amount of the fee, frequency, date and method of collection, are subject to change in Franchisor's sole discretion, after at least 15 days' prior notice to Franchisee. See Subsection 9.C.
- E. PAYMENT OF FEES. Franchisee will pay or enable Franchisor to collect any and all sums or amounts promptly as they became due. Franchisee's failure to pay amounts when due may constitute grounds for termination of the Franchise.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, franchisees must contribute 2% of gross receipts as a marketing fee. This fee is payable and reported in the same manner as the royalty fees, as detailed in Subsection 8.B of the Franchise Agreement. The marketing fee contributes to the marketing fund outlined in Subsection 10.A of the agreement. Annex Brands retains the right to modify the franchisee's schedule for marketing and promotional fund contributions, as well as the reporting of gross receipts and other financial information, to an interval established by Annex Brands.
Annex Brands franchisees must authorize payments via automatic draft from their designated bank account or establish a payment arrangement that allows Annex Brands to withdraw funds to pay royalty fees, marketing fees, and other fees. Franchisees are responsible for ensuring sufficient funds are available in their account to cover these drafts. Annex Brands may specify periodic transfer amounts based on past sales reports and reasonable expectations of future dues. Franchisees must notify Annex Brands in advance of any changes to their financial institution or account.
Franchisees are also required to submit a completed Unit Sales Report to Annex Brands each Saturday after the close of business and before midnight for the week ending that Saturday, or at such other interval established by Annex Brands. The amount due on the report for royalty fees, marketing fees, and any other fees will be withdrawn from the franchisee's account on the following Wednesday, or at such other interval established by Annex Brands, unless Annex Brands notifies the franchisee of an adjusted amount.