What was the net change in the number of franchised Annex Brands outlets during the year 2024?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 20: Outlets and Franchisee Information]
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 181 | 180 | -1 |
| 2023 | 180 | 176 | -4 | |
| 2024 | 176 | 171 | -5 | |
| Company Owned | 2022 | 1 | 0 | -1 |
| 2023 | 0 | 0 | 0 | |
| 2024 | 0 | 0 | 0 | |
| Total Outlets | 2022 | 182 | 180 | -2 |
| 2023 | 180 | 176 | -4 | |
| 2024 | 176 | 171 | -5 |
[Item 20: Outlets and Franchisee Information]
| Outlet Type | Year | Outlets At Start Of Year | Outlets At End Of Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 9 | 9 | 0 |
| 2023 | 9 | 8 | -1 | |
| 2024 | 8 | 8 | 0 | |
| Company-Owned | 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 | |
| 2024 | 0 | 0 | 0 | |
| Total Outlets | 2022 | 9 | 9 | 0 |
| 2023 | 9 | 8 | -1 | |
| 2024 | 8 | 8 | 0 |
[Item 20: Outlets and Franchisee Information]
| Outlet Type | Year | Outlets At Start Of Year | Outlets At End Of Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 44 | 44 | 0 |
| 2023 | 44 | 42 | -2 | |
| 2024 | 42 | 43 | +1 | |
| Company-Owned | 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 | |
| 2024 | 0 | 0 | 0 | |
| Total Outlets | 2022 | 44 | 44 | 0 |
| 2023 | 44 | 42 | -2 | |
| 2024 | 42 | 43 | +1 |
[Item 20: Outlets and Franchisee Information]
| Outlet Type | Year | Outlets At Start Of Year | Outlets At End Of Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 301 | 305 | +4 |
| 2023 | 305 | 315 | +10 | |
| 2024 | 315 | 322 | +7 |
[Item 20: Outlets and Franchisee Information]
| Outlet Type | Year | Outlets At Start Of Year | Outlets At End Of Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 3 | 3 | 0 |
| 2023 | 3 | 3 | 0 | |
| 2024 | 3 | 2 | -1 | |
| Company-Owned | 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 | |
| 2024 | 0 | 0 | 0 | |
| Total Outlets | 2022 | 3 | 3 | 0 |
| 2023 | 3 | 3 | 0 | |
| 2024 | 3 | 2 | -1 |
[Item 20: Outlets and Franchisee Information]
| Outlet Type | Year | Outlets At Start Of Year | Outlets At End Of Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 21 | 21 | 0 |
| 2023 | 21 | 21 | 0 | |
| 2024 | 21 | 21 | 0 | |
| Company-Owned | 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 | |
| 2024 | 0 | 0 | 0 | |
| Total Outlets | 2022 | 21 | 21 | 0 |
| 2023 | 21 | 21 | 0 | |
| 2024 | 21 | 21 | 0 |
[Item 20: Outlets and Franchisee Information]
| Outlet Type | Year | Outlets At Start Of Year | Outlets At End Of Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 559 | 562 | +3 |
| 2023 | 562 | 565 | +3 | |
| 2024 | 565 | 567 | +2 | |
| Company- | ||||
| Owned | ||||
| 2023 | 0 | 0 | 0 | |
| 2024 | 0 | 0 | 0 | |
| Total Outlets | 2022 | 560 | 562 | +2 |
| 2023 | 562 | 565 | +3 | |
| 2024 | 565 | 567 | +2 |
All historical numbers in this Item 20 are for our fiscal years ended September 30, 2022, 2023 and 2024.
Source: Item 20 — Outlets and Franchisee Information (FDD pages 78–109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the net change in the number of franchised outlets varies across different reporting groups within the company. One group experienced a net decrease of 5 franchised outlets in 2024, starting the year with 176 and ending with 171. Another group saw no net change, maintaining 8 franchised outlets throughout 2024. Conversely, one group experienced a net increase of 1 franchised outlet, moving from 42 to 43, while another saw an increase of 7, going from 315 to 322. One group experienced a net decrease of 1 franchised outlet, moving from 3 to 2, while another saw no change, remaining at 21. Finally, one group experienced an increase of 2 franchised outlets, moving from 565 to 567. These numbers reflect the specific changes within each reporting group and highlight the varying performance and growth patterns within the Annex Brands franchise system. Prospective franchisees should inquire about which group they will be joining.
These figures are based on Annex Brands' fiscal year, which ends on September 30th. The FDD also notes that historical numbers in Item 20 are for the fiscal years ended September 30, 2022, 2023, and 2024. This is a detail to keep in mind when comparing year-over-year data. Additionally, the FDD lists the names, addresses, and telephone numbers of franchisees operating under various trademarks as of September 30, 2024, which can be a valuable resource for prospective franchisees to contact existing owners and gather insights.
Overall, the data suggests that while some Annex Brands franchise groups are experiencing growth, others are seeing a decline or stagnation in the number of franchised outlets. This mixed performance underscores the importance of conducting thorough due diligence and understanding the specific dynamics of the franchise group a potential franchisee is considering joining. It is also important to note that the FDD includes information on franchise agreements signed but outlets not yet opened, as well as projections for new franchised and company-owned outlets in the upcoming fiscal year, which can provide additional context for assessing the growth potential of the franchise system.