How does Annex Brands require franchisees to pay transit insurance premiums?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Transit insurance | Premiums generally are $0.55 to $1.75 per $100 of property valuation, packaging and shipping charges, (typically this expense is passed through to the customer after being marked up by you) | Payable weekly with royalty fee and marketing fee payments | You must participate in any group-wide or other insurance program that we designate regarding small parcel, freight or transit damage and related risks. Premiums typically are billed to the customer at the time of shipment, and are based on the carrier used, whether the shipment is domestic or international, the declared value of the items tendered for shipping, and the packaging and shipping charged to the customer. In our sole discretion, we may increas |
Source: Item 6 — OTHER FEES (FDD pages 24–32)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, franchisees must participate in any group-wide or other insurance program that Annex Brands designates regarding small parcel, freight, or transit damage and related risks. The premiums generally range from $0.55 to $1.75 per $100 of property valuation, packaging, and shipping charges.
Annex Brands franchisees typically bill these premiums to the customer at the time of shipment, often marking up the cost. The premium amount is based on factors such as the carrier used, whether the shipment is domestic or international, the declared value of the items being shipped, and the packaging and shipping charges applied to the customer.
The transit insurance premiums are payable weekly along with the royalty and marketing fees, creating a consistent payment schedule for franchisees. This system ensures that Annex Brands franchisees are covered for potential transit-related damages and risks, while also allowing them to pass the cost on to their customers.