What is the minimum period an Annex Brands converted center must be owned and operated by the franchisee?
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
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- 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 converts an existing business into an Annex Brands center, they must own and operate the center for at least one year. This requirement applies to standard, flex, and express centers.
Specifically, this one-year minimum ownership period is tied to discounted initial franchise fees. For instance, the initial franchise fee is $5,000 for a converted standard or flex center if the franchisee already owns another Annex Brands location. Similarly, a converted center may have an initial franchise fee of $13,125 if the franchisee qualifies for the VetFran discount.
However, if the franchisee sells the converted center before the completion of this one-year period, they must pay Annex Brands the difference between the discounted initial franchise fee and the standard initial franchise fee. For a standard or flex center, this amount is $30,000. For a VetFran-discounted center, this amount is $21,875. For an express center, the amount is $4,375. This policy ensures that Annex Brands recoups the full initial franchise fee if the franchisee does not operate the converted center for the minimum required time.