What is the notification period Annex Brands provides before changing transit insurance premiums or insurance programs?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Transit insurance | Premiums generally are $0.55 to $1.75 per $100 of property valuation, packaging and shipping charges, (typically this expense is passed through to the customer after being marked up by you) | Payable weekly with royalty fee and marketing fee payments | You must participate in any group-wide or other insurance program that we designate regarding small parcel, freight or transit damage and related risks. Premiums typically are billed to the customer at the time of shipment, and are based on the carrier used, whether the shipment is domestic or international, the declared value of the items tendered for shipping, and the packaging and shipping charged to the customer. In our sole discretion, we may increase the rate if you have a high number of claims due to improper packaging and shipping standards (generally, $0.72 to $2.28 per $100 of property valuation, packaging and shipping charges) after at least 15 days' notice to you. Premiums and insurance programs are subject to change after at least 15 days' notice to you. Payable weekly, or as otherwise designated, to us or through us to our designated suppliers. You must pay us by automatic bank draft. (3) |
Source: Item 6 — OTHER FEES (FDD pages 24–32)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, Annex Brands will provide at least 15 days' notice before changing transit insurance premiums or insurance programs. The transit insurance premiums generally range from $0.55 to $1.75 per $100 of property valuation, packaging, and shipping charges, which is typically passed on to the customer with a markup.
Annex Brands may increase the rate if a franchisee has a high number of claims due to improper packaging and shipping standards. In such cases, the premiums could increase to $0.72 to $2.28 per $100 of property valuation, packaging, and shipping charges, but only after providing at least 15 days' notice.
This policy ensures that Annex Brands franchisees have some advance warning before any changes to their transit insurance costs or the programs themselves, allowing them to adjust their pricing and business strategies accordingly. The franchisee is responsible for participating in any group-wide or other insurance program that Annex Brands designates regarding small parcel, freight, or transit damage and related risks.