Does Annex Brands provide assistance in opening my Annex Brands retail center, and what conditions apply?

G

Except as listed below, we are not required to provide any assistance to you.

Before you open your retail center, we will:

• 1. Provide you with sample layouts for your franchised facility (franchise agreement, Subsection 3.C).
• 1. Provide you with site selection assistance, subject to availability of personnel and at your request (franchise agreement, Subsection 3.A).
• 1. Provide you with our review and approval or disapproval of proposed sites for your retail center (franchise agreement, Subsection 3.A).
• 1. Provide you with assistance in preparation for initial training (franchise agreement, Subsection 4.A).
• 1. Provide you with initial training as described below under the heading "Training" (franchise agreement, Subsection 4.A).
• 1. Provide you with assistance in opening your retail center, subject to availability of personnel and at your request (franchise agreement, Subsection 4.A).
• 1. Provide you with our Manuals and any other catalogs and materials that we may select, on loan (franchise agreement, Subsection 4.C).
• 1. Provide you with, or provide you the names of approved suppliers for, certain equipment, interior and exterior signage, fixtures, opening inventory, and supplies, and provide you with specifications for equipment, interior and exterior signage, fixtures, inventory, and supplies (franchise agreement, Subsections 9.B, 9.C, and 9.E). For example, we or approved suppliers provide you with (and deliver to you): (a) a retail center package that includes fixtures (counters, slat walls, accessories for slat walls, carton walls, mailbox holders, cabinetry, trim, etc.), mailboxes, package lockers, and flooring; (b) interior and exterior signage; and (c) other equipment, computer hardware, software programs and licenses, initial inventory, and supplies (see Item 5). Currently, we are the only approved supplier of the retail center package. We are the only supplier of our proprietary PostalMate POS network software (see Computer Hardware and Software below). We do no installation. Our designated contractor or an approved substitute contractor installs the retail center package, and also may install interior and exterior signage (see Item 5).
• 1. Provide you with samples of initial advertising and marketing materials (franchise agreement, Subsection 10.A).

We may delegate any of our obligations to any regional licensee for your brand and geographic area.

During the operation of your retail center, we will:

1. Provide you with continuing and advanced training and assistance (franchise agreement, Subsections 4.A and 4.B).

• 1. Provide you with updates to our Manuals (franchise agreement, Subsection 4.C).
• 1. Provide you with merchandising, marketing, record keeping, operating and other data and advice (franchise agreement, Subsections 4.B and 10.A).
• 1. Administer a system-wide marketing fund, in our sole discretion (franchise agreement, Subsection 10.A).

We may delegate any of our obligations to any regional licensee for your brand and geographic area.

Marketing

Our marketing programs are currently divided into 3 types, as described below: new center/new owner marketing program, in-Center TV marketing program, and continuing marketing. You must participate in each type of program.

New Center/New Owner Marketing Program Deposit.

Under our new center/new owner marketing program, you must deposit with us at least $5,500: before or at initial training, for or a new standard, flex or express retail center, or for a conversion standard or flex center; or on or before the closing date of a transfer, if you assume operation of an existing retail center by transfer. We will use the deposit to promote your retail center before, and for about 90 days after, you (i) open your retail center, (ii) assume the operation of an existing retail center by transfer, or (iii) convert an existing business to a retail center.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 45–62)