When are payments for deposits and pre-paid expenses due for an Annex Brands Express Retail Center?
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 |
|---|---|---|---|---|
| Deposits and pre-paid | $13,500 - $20,000 | As agreed | As incurred | Us and suppliers you |
| expenses (15) | 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 payments for deposits and prepaid expenses for an Express Retail Center, which range from $13,500 to $20,000, are due as incurred. The method of payment is "as agreed" and these payments are made to Annex Brands and suppliers the franchisee chooses. These deposits may include a $3,000 deposit to apply to the cost of building permits for a new Express Retail Center. Note 15 in Item 7 states that deposits may vary from location to location and some utility deposits may be refundable after a designated period. The landlord may require a security deposit and the first month's rent in advance.
These deposits and prepaid expenses are part of the estimated initial investment required to start an Annex Brands Express Retail Center. It's important to note that these figures are estimates, and the actual costs may vary. The "as agreed" payment method suggests there may be some flexibility in how these expenses are paid, which could be negotiated between the franchisee, Annex Brands, and the suppliers.
Prospective franchisees should carefully review Item 7 of the FDD and discuss the specifics of these deposits and prepaid expenses with Annex Brands to understand the payment schedule and any potential variations based on their location and specific circumstances. Understanding the refundability of deposits with both Annex Brands and other suppliers is also crucial for managing initial costs.