Does Annex Brands have to provide advance notice before changing the due dates for the Royalty fee?
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, Annex Brands may establish other due dates for the royalty fee. The royalty fee is 5% of gross receipts and is typically due each Wednesday, after the close of business, for the previous week ending Saturday. The franchisee must report gross receipts each Saturday after the close of business before midnight for the week ending on that Saturday. Payment to Annex Brands must be made via automatic bank draft.
Similarly, Annex Brands may establish other due dates for the marketing fee, which is 2% of gross receipts. The advertising association fee is due 10 days after the end of each calendar month or as otherwise provided by local or regional association bylaws.
It is important to note that the FDD does not specify any advance notice requirement to franchisees if Annex Brands decides to change the due dates for the royalty or marketing fees. A prospective franchisee should clarify with Annex Brands the conditions under which the due dates may be changed and how much advance notice they would receive.