Does Annex Brands offer any financing options for the initial franchise fee?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
8. FEES
- A. INITIAL FRANCHISE FEE; CONVERSION TRAINING FEE. The initial franchise fee and any applicable conversion training fee are due and payable when this Agreement is executed and are non-refundable except as described below:
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- Initial Franchise Fee for a Standard Center or Flex Center. If this Agreement is for a standard Center or flex Center, Franchisee will pay to Franchisor an initial franchise fee of:
- a) $35,000; or
- b) $26,250 if 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 ($8,750) upon sale of the Center; or
- c) $17,500 if this Agreement is for a Center that will be converted from a qualifying existing business providing the same services to the public; provided, however, that Franchisee will also pay to Franchisor a conversion training fee of $4,000; and provided further 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 ($17,500) upon sale of th
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Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Annex Brands does not explicitly offer financing options for the initial franchise fee. The document details the initial franchise fees for different types of centers, including standard, flex, and express centers, as well as potential discounts like the VetFran discount. It also mentions the conditions under which the initial franchise fee may be partially refundable. However, there is no mention of Annex Brands providing direct financing or partnerships with financial institutions to finance the initial franchise fee.
For prospective Annex Brands franchisees, this means they should be prepared to secure funding for the initial franchise fee through their own means, such as personal savings, loans from banks or credit unions, or other external financing options. Understanding the specific initial franchise fee amount for the type of center they wish to open is crucial for financial planning. Additionally, franchisees should be aware of the conditions for potential refunds, although the fee is generally non-refundable.
While the FDD does not specify financing options offered by Annex Brands, it is possible that such options exist but are not documented in the FDD. Therefore, it is advisable for potential franchisees to directly inquire with Annex Brands about any available financing programs or recommended lenders during their due diligence process. This will help them make informed decisions about the financial requirements and resources needed to start an Annex Brands franchise.