Does Annex Brands recommend amounts for equipment, supplies, and services purchases?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase or lease equipment, supplies (including packaging materials, labels and forms), services (such as FedEx, UPS and DHL shipping services), furniture, interior and exterior signage, computer hardware, and software programs and licenses, in accordance with our
specifications. Also, you must purchase or lease these items in amounts that we recommend, based on our experience in the business, and to provide you proper planning, training and record keeping. Except as otherwise stated in this disclosure document, in our Manuals, in writing or otherwise, you may purchase or lease these items from any source. There are no approved suppliers in which any of our officers owns an interest.
We are the only approved supplier of the PostalMate POS network software and all related updates and enhancements you must use for your retail center. We may require you to license, through us or 3rd party suppliers, for an additional charge, updates and enhancements that we consider will significantly improve the operation or function of the PostalMate POS network software.
We are the only approved supplier of the equipment package for your retail center. The trade dress package for a standard, flex or express retail center includes fixtures (counters, slat walls, accessories for slat walls, carton walls, mailbox holders, cabinetry, trim, etc.), mailboxes, package lockers, and flooring.
Currently, ScreenCloud Limited is the only approved supplier of the ScreenCloud webbased software, and Amazon.com, Inc. is the only approved supplier of the device necessary to participate in the in-Center TV marketing program. See Item 6 for more information.
We are the only approved supplier for our web-based financial training portal, which we offer under a license from Profit Soup LLC. See Items 6 and 11 for details.
In our fiscal year ended September 30, 2024, we received $661,000 in revenue from franchisees' purchases of equipment, inventory and supplies from us, or 2.7% of our total revenue of $24,936,000, with $550,000 in expenses. We received $0 from suppliers approved by us based on their sales and leases of products and services to our franchisees. This information is taken from our audited financial statements in Exhibit F.
We estimate that the following purchases and leases of products and services will represent the following percentages of your total purchases and leases of products and services to establish and operate your retail center:
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 39–43)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees must purchase or lease equipment, supplies, and services according to Annex Brands' specifications. Annex Brands also recommends the amounts of these purchases and leases based on their experience in the business to provide proper planning, training, and record keeping. Unless otherwise stated in the FDD or manuals, franchisees can purchase or lease these items from any source.
Annex Brands is the only approved supplier of the PostalMate POS network software, including updates, and the equipment package for the retail center, which includes fixtures, mailboxes, package lockers, and flooring. Currently, ScreenCloud Limited is the only approved supplier of the ScreenCloud web-based software, and Amazon.com, Inc. is the only approved supplier of the device necessary to participate in the in-Center TV marketing program. Annex Brands is also the only approved supplier for their web-based financial training portal, licensed from Profit Soup LLC.
In the fiscal year ended September 30, 2024, Annex Brands received $661,000 in revenue from franchisees' purchases of equipment, inventory, and supplies from them, representing 2.7% of their total revenue of $24,936,000, with $550,000 in expenses. Annex Brands received $0 from suppliers approved by them based on their sales and leases of products and services to their franchisees. The FDD includes estimates of the percentages of total purchases and leases of products and services needed to establish and operate a retail center.