What is the payment method required for the Marketing fee for Annex Brands?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty fee | 5% of Gross Receipts (2) | Each Wednesday, after the close of business, for the previous week ending Saturday | We may establish other due dates. You must report Gross Receipts each Saturday after the close of business before midnight for the week ending on that Saturday. You must pay us by automatic bank draft. (3) |
| Marketing fee (4) | 2% of Gross Receipts (2) | Each Wednesday, after the close of business, for the previous week ending Saturday | We may establish other due dates. You must report Gross Receipts each Saturday after the close of business before midnight for the week ending on that Saturday. You must pay us by automatic bank draft. (3) We administer a system-wide marketing fund. |
| Advertising association fee | Monthly, the greater of $150 or 1% of Gross Receipts (2) | 10 days after end of each calendar month or as otherwise provided by local or regional association bylaws | You must participate in a local or regional association. The board of directors of your association may also periodically impose special assessments on its members. You pay fees by automatic bank draft, either to the association or directly to us, at our option. (3) |
Source: Item 6 — OTHER FEES (FDD pages 24–32)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, the marketing fee is paid via automatic bank draft. The marketing fee is 2% of gross receipts. This fee is due each Wednesday, after the close of business, for the previous week ending Saturday. Franchisees must report gross receipts each Saturday after the close of business before midnight for the week ending on that Saturday.
This means that Annex Brands franchisees are required to set up an automatic bank draft to pay the marketing fee. This ensures timely payments and reduces the administrative burden of manual payments. The marketing fee contributes to a system-wide marketing fund, which Annex Brands uses to promote the brand and support franchisees' marketing efforts.
It is important to note that Annex Brands may establish other due dates for the marketing fee. Franchisees should stay informed of any changes to the due dates to avoid late payment penalties. The automatic bank draft payment method applies not only to the marketing fee but also to other fees such as the royalty fee and advertising association fee, ensuring a consistent payment process for franchisees.