When are payments for fixtures due for an Annex Brands Express Retail Center?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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Note 15: Deposits may vary from location to location. Some utility deposits may be refundable after a designated period. The landlord may require you to pay a security deposit and the 1st month's rent in advance. The security deposit will depend on the size of the facility, location and other factors (for example, 1,000 square feet at $2 per square foot is a deposit of $2,000. The deposits payable to us in this range include: a $10,500 to $15,000 deposit for a new standard, flex or express retail center, or a $2,000 to $15,000 deposit for a conversion standard or flex retail center, to apply to the cost of shipping fixtures and equipment to your standard, flex or express retail center; and a $3,000 deposit, to apply to the cost of building permits for a new standard or flex retail center (included in low and high ranges), a conversion standard or flex retail center (included in high range only), or a new express retail center (included in low and high ranges). (See Items 5 and 6). Other suppliers or agencies may require deposits. The refundability of any deposit is at the discretion of the vendo
Source: Item 7 — Estimated Initial Investment (FDD pages 32–39)
What This Means (2025 FDD)
Based on the 2025 FDD, the timing of payments for fixtures for an Annex Brands Express Retail Center is not explicitly detailed in the provided Item 7 excerpts. However, Note 15 does mention a deposit ranging from $10,500 to $15,000 for a new standard, flex, or express retail center, or a $2,000 to $15,000 deposit for a conversion standard or flex retail center, to apply to the cost of shipping fixtures and equipment. This deposit is payable to the franchisor.
While the FDD excerpt does not specify the exact due date for the balance of fixture costs beyond the initial deposit, it indicates that a deposit is required upfront. This implies that the remaining balance for fixtures would likely be due either upon delivery, installation, or according to a payment schedule agreed upon with Annex Brands or their designated suppliers. The FDD also mentions that deposits may vary from location to location and that the refundability of any deposit is at the discretion of the vendor.
Therefore, a prospective Annex Brands franchisee should clarify the payment schedule for fixtures with the franchisor during their due diligence. Specifically, they should inquire about when the balance of the fixture costs is due, whether it's upon ordering, delivery, or installation, and if there are any financing options available for these expenses. Understanding these payment terms is crucial for managing the initial investment and cash flow during the startup phase of the franchise.