When is the payment due for the Annex Brands package lockers?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure (1) | Amount (2) | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Initial franchise fee (3) | $35,000 | Lump sum | On signing franchise agreement | Us |
| Fixtures | $40,000 - $50,000 | Lump sum | Before opening | Us |
| Mailboxes | $14,000 - $16,000 | Lump sum | Before opening | Us |
| Package lockers (4) | $3,500 | Lump Sum | Before opening | Us |
| Flooring | $6,000 - $9,000 | Lump sum | Before opening | Us |
| Interior signage (5) | $1,000 - $2,500 | Lump sum | Before opening | Us or suppliers you choose |
| Exterior signage (5) | $6,000 - $8,000 | Lump sum | Before opening | Us or suppliers you choose |
| Construction services (6) | $70,000 - $90,000 | As agreed | Before opening | Us or substitute licensed contractor |
| Construction consultation fee, if applicable (7) | (7) | Before construction begins | Before opening | Us |
| Equipment (8) | $4,000 - $6,500 | As agreed | Before opening | Us or suppliers you choose |
Source: Item 7 — Estimated Initial Investment (FDD pages 32–39)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the payment for package lockers is due before opening the franchise. The method of payment is a lump sum. The amount due for package lockers varies depending on the type of retail center. For a new standard, flex, or express retail center, the payment is $3,500. For a conversion standard or flex retail center, the payment ranges from $0 to $3,500. For a new express retail center, the payment ranges from $0 to $2,500. In all scenarios, the payment is made to Annex Brands.
This means that prospective Annex Brands franchisees need to budget for this expense as part of their initial investment. The 'When Due' column indicates that this payment must be made before the retail center can begin operations. This is a common practice in franchising, as it ensures that the franchisee has secured the necessary equipment and resources to start the business.
It is important to note that the cost of package lockers can vary depending on the specific needs of the location and the type of retail center being established. Franchisees should discuss these costs with Annex Brands to get a more accurate estimate for their particular situation. Additionally, Note 4 states that a 24-hour access security gate and digital keypad entry are required to have package lockers. However, these may not be required for a new express retail center or if you are converting a qualified existing business to a standard or flex retail center.