Does Annex Brands require the franchisee to purchase supplies from the franchisor and its affiliates?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
it deposit.
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- Purchase from suppliers approved or designated by Franchisor (which may include solely Franchisor and/or its affiliates) all required trade dress fixtures, furnishings and equipment for the Center, it being agreed and acknowledged by Franchisee that: (a) Franchisee will be required to pay Franchisor a $10,500 to $15,000 deposit for a new standard, flex or express Center, or a $2,000 to $15,000 deposit for a conversion standard or flex Center (based on the geographical location of the Center, and the type and amount of fixtures and equipment needed), before or at initial training, to cover the cost of shipping fixtures and equipment to Franchisee (which deposit is partially refundable if shipping costs less than the deposit), and Franchisee will be required to pay to Franchisor any shipping costs exceeding the deposit promptly after shipping takes place; and (b) Franchisee will be required to purchase from Franchisor a retail fixtures and equipment package (including all trade dress fixtures, mailboxes, package lockers and flooring for a standard, flex or express Center) for a non-refundable amount that varies based on the type and amount of fixtures and equipment needed, the cost of which is payable when Franchisee's order is placed.
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- Construct the Center using a contractor designated by Franchisor, in compliance with the plans prepared by an architect designated by Franchisor, and in compliance with all applicable laws, ordinances, building codes, permit and lease requirements, and pay the contractor fee;
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, franchisees are required to purchase certain items from Annex Brands and its affiliates. Specifically, franchisees must purchase all required trade dress fixtures, furnishings, and equipment from suppliers approved or designated by Annex Brands, which may include Annex Brands itself or its affiliates.
Before initial training, a franchisee is required to pay a deposit ranging from $10,500 to $15,000 for a new standard, flex, or express Center, or $2,000 to $15,000 for a conversion standard or flex Center. This deposit covers the cost of shipping fixtures and equipment. Additionally, franchisees must purchase a retail fixtures and equipment package from Annex Brands, with the cost varying based on the type and amount of fixtures and equipment needed, payable when the order is placed.
Franchisees must also purchase an opening inventory of products, packaging materials, and other supplies from suppliers approved or designated by Annex Brands, which may include Annex Brands and its affiliates. If a franchisee wishes to use equipment or purchase from a supplier not currently approved, they must notify Annex Brands and submit the necessary information for approval. Annex Brands will then determine whether the equipment or supplier meets their standards. This ensures that Annex Brands maintains control over the quality and consistency of products and services offered at all franchise locations.