Does Annex Brands reserve the right to add additional exclusions to the 'Gross Sales' calculation?

According to Annex Brands' 2025 Franchise Disclosure Document, Annex Brands retains the right to modify the calculation of 'Gross Sales' by adding exclusions. Gross Sales includes all revenue for products and services, including those with higher margins like shipping, faxes, copies, and metered postage, as well as lower margin items like postage stamps. However, certain items are excluded from the calculation of Gross Sales. These exclusions include sales, use, or service taxes; customer refunds and adjustments; the cost of electronic funds transfers and money orders for resale; utility funds collected; the cost of lottery tickets and phone cards for resale; the cost of 3rd party truck rental sales; the cost of eBay sales; and the cost of ancillary fees paid to government agencies for processing fingerprinting, LiveScan, and passports.

Annex Brands specifies that it may periodically add further exclusions to this list. This can be done at their discretion as new programs, products, or services are introduced or as changes are made to existing ones. Any such changes will be communicated in the Annex Brands manuals or in writing.

This clause provides Annex Brands with the flexibility to adjust the Gross Sales calculation as their business evolves, which could impact the royalty and marketing fees franchisees pay, as these are based on Gross Receipts (calculated by excluding the cost of metered postage and postage stamps from Gross Sales). Prospective franchisees should stay informed of any changes to the Gross Sales definition and understand how these changes could affect their financial obligations to Annex Brands.