What does the Annex Brands national convention hotel fee cover?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Management fee (7) & (10) | Currently, $300 per day per person, plus expenses | 10 days after invoice | If we manage your retail center because of your illness, incapacity, death or failure to timely cure a default, or because the franchise expires, terminates or is not renewed, you must pay our then-current daily fee and our out-of pocket expenses. |
| National convention registration fee (per person) (8) | Currently, estimated proportionate share of our out-of-pocket costs for hosting, meals, and convention activities. | Before convention | We may hold a national convention about every 10 to 18 months. You and/or your designated personnel must attend the full program of, and stay at the designated hotel of, each national convention. The registration fee is assessed per person attending a national convention. You must pay travel and incidental expenses for yourself and/or your personnel who attend. |
| National convention hotel fee (8) | Currently, room charge, taxes and fees for 1 room at the convention hotel during the convention dates | Before convention | The hotel fee is for 1 room during the convention dates. You must pay for any additional rooms, and for travel and incidental expenses for yourself and/or your personnel that are not covered by the hotel fee. |
Source: Item 6 — OTHER FEES (FDD pages 24–32)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the national convention hotel fee covers the room charge, taxes, and fees for one room at the designated convention hotel during the convention dates. Franchisees are responsible for any additional rooms needed, as well as travel and incidental expenses not covered by the hotel fee.
The FDD also states that the national convention participation deposits will be applied to the national convention registration fee and the national convention hotel fee for the next national convention. If these deposits are insufficient to cover the fees, Annex Brands has the right to debit the franchisee's bank account for the difference. Conversely, if a franchisee attends the full program and stays at the designated hotel, any remaining unused deposits may roll over to the following convention or, with approval from Annex Brands, be reimbursed or applied to other convention-related expenses.
It is important to note that attendance at the full program and staying at the designated hotel are conditions for the rollover or reimbursement of unused deposits. Failure to meet these conditions results in forfeiture of the accrued deposits to Annex Brands. The FDD specifies that these deposits are also forfeited upon expiration, termination, or non-renewal of the franchise, and/or closure of the retail center. The national convention registration fee has typically been $799 to $999 per person, and the hotel fee has been $500 to $1,100 for one room during the convention dates, depending on the venue. A national convention typically lasts 3 to 4 days.