To whom and how often are Annex Brands transit insurance premiums payable?
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' 2025 Franchise Disclosure Document, franchisees are required to participate in any group-wide or other insurance program that Annex Brands designates regarding small parcel, freight, or transit damage and related risks. The transit insurance premiums generally range from $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 the franchisee.
The premiums are payable weekly along with royalty and marketing fees. These payments are made either directly to Annex Brands or through them to their designated suppliers. Franchisees must make these payments via automatic bank draft.
Annex Brands retains the right to increase the transit insurance rate if a franchisee has a high number of claims due to improper packaging and shipping standards. In such cases, the premium could increase to $0.72 to $2.28 per $100 of property valuation, packaging, and shipping charges, but Annex Brands must provide at least 15 days' notice before increasing the rate. Premiums and insurance programs are subject to change after at least 15 days' notice to the franchisee.