What is the payment method required for the Royalty 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) |
Source: Item 6 — OTHER FEES (FDD pages 24–32)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, the royalty fee is 5% of Gross Receipts. This fee is due each Wednesday, after the close of business, for the previous week ending Saturday. Annex Brands may establish other due dates. Franchisees must report Gross Receipts each Saturday after the close of business before midnight for the week ending on that Saturday.
The required payment method for the royalty fee is automatic bank draft. This means Annex Brands will automatically withdraw the funds from the franchisee's bank account to cover the royalty fee.
Franchisees should ensure they understand the reporting schedule and maintain sufficient funds in their account to avoid any issues with the automatic payments. The automatic bank draft payment method is a fairly standard practice in franchising, ensuring timely and consistent payments to the franchisor.