How must the Royalty fee be paid to Annex Brands?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty fee | 5% of Gross Receipts (2) | Each Wednesday, after the close of business, for the previous week ending Saturday | We may establish other due dates. You must report Gross Receipts each Saturday after the close of business before midnight for the week ending on that Saturday. You must pay us by automatic bank draft. (3) |
Source: Item 6 — OTHER FEES (FDD pages 24–32)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, the royalty fee is 5% of Gross Receipts. Franchisees must report Gross Receipts each Saturday after the close of business before midnight for the week ending on that Saturday.
The royalty fee must be paid each Wednesday, after the close of business, for the previous week ending Saturday. Annex Brands requires that franchisees pay the royalty fee by automatic bank draft. However, Annex Brands retains the right to establish other due dates for the royalty fee.
Annex Brands also specifies that franchisees must participate in their then-current electronic reporting system and maintain sufficient funds in their authorized accounts to meet their payment obligations under the franchise agreement. Some banks and financial institutions may charge a fee for electronic transfers, and these fees are the responsibility of the franchisee.