Is the retail fixtures and equipment package fee for Annex Brands refundable?
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 orde
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the retail fixtures and equipment package fee is non-refundable. The franchisee is required to purchase a retail fixtures and equipment package from Annex Brands, which includes trade dress fixtures, mailboxes, package lockers, and flooring. The cost of this package varies depending on the type and amount of fixtures and equipment needed for a standard, flex, or express Center.
This non-refundable fee is payable when the franchisee places their order for the retail fixtures and equipment package. This means that once the order is placed, the franchisee cannot get this money back, regardless of whether they proceed with opening the franchise or not. This is a crucial point for prospective franchisees to consider, as it represents a significant upfront investment that is not recoverable.
In contrast, Annex Brands does require a deposit ranging from $10,500 to $15,000 for a new standard, flex, or express Center, or a $2,000 to $15,000 deposit for a conversion standard or flex Center to cover the cost of shipping fixtures and equipment. This deposit is partially refundable if the shipping costs are less than the deposit amount. However, any shipping costs exceeding the deposit must be promptly paid by the franchisee. This deposit structure differs from the retail fixtures and equipment package fee, as it offers a potential refund based on actual shipping expenses.