Can Annex Brands require the Advertising association fees to be paid directly to them?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| 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, franchisees are required to participate in a local or regional advertising association. The advertising association fee is paid monthly and is the greater of $150 or 1% of gross receipts. These fees are due 10 days after the end of each calendar month, or as otherwise provided by local or regional association bylaws.
The FDD specifies that Annex Brands has the option to collect the advertising association fees directly from the franchisee. Payment is made via automatic bank draft. The board of directors of the local or regional association may also periodically impose special assessments on its members.
This means that Annex Brands franchisees may be required to pay advertising fees either to the local association or directly to Annex Brands, depending on Annex Brands's preference. Franchisees should clarify with Annex Brands how these fees will be collected in their specific region to ensure proper payment procedures are followed.