What is the range for the initial franchise fee for an Annex Brands franchise?
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 |
|---|---|---|---|---|
| Initial franchise fee (3) | $35,000 | Lump sum | On signing franchise agreement | Us |
| Fixtures | $40,000 - $50,000 | Lump sum | Before opening | Us |
| Mailboxes | $14,000 - $16,000 | Lump sum | Before |
Source: Item 7 — Estimated Initial Investment (FDD pages 32–39)
What This Means (2025 FDD)
According to the 2025 FDD, the initial franchise fee for Annex Brands varies depending on the type of retail center. For a new standard, flex, or express retail center, the initial franchise fee is $35,000. However, a reduced initial franchise fee of $17,500 is offered for a conversion standard or flex retail center. This fee is paid in a lump sum when signing the franchise agreement.
For prospective franchisees, this means the upfront cost to join Annex Brands can differ significantly based on whether they are starting a new location or converting an existing business. The initial franchise fee is non-refundable, although Item 5 of the FDD may provide information on possible discounts and circumstances for a potential refund.
It is important to note that if a franchisee is assuming operations of an existing retail center through a transfer, they will pay a transfer fee instead of the initial franchise fee. Additionally, franchisees converting an existing business to a standard or flex retail center will also pay a conversion training fee of $4,000 unless they already own and operate one of Annex Brands' retail centers or Commercial Logistics Centers.
Therefore, prospective franchisees should carefully consider the type of retail center they plan to operate and review Item 5 and Item 6 of the FDD for more details on discounts, transfer fees, and conversion fees to accurately estimate their initial investment.