When is the royalty fee payment due for an Annex Brands franchise, and what period does it cover?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
I agree to submit a completed Unit Sales Report ("Report") to COMPANY each Saturday, after the close of business and before midnight, for the week ending that Saturday, or at such other interval established by COMPANY. COMPANY agrees that the amount due on the Report for royalty fees, marketing fees, and any other fees (but not national convention participation deposits or technology fees), including but not limited to fees for additional email accounts and insurance premiums, will be the amount withdrawn from my account on the following Wednesday or at such other interval established by COMPANY, unless COMPANY notifies me of an adjusted amount.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 FDD, Annex Brands franchisees are required to submit a Unit Sales Report each Saturday after the close of business and before midnight, covering sales for the week ending that Saturday. The royalty fees, along with marketing fees and other applicable fees (excluding national convention participation deposits or technology fees), are automatically withdrawn from the franchisee's account the following Wednesday. This means that the royalty payment covers the sales from the previous week, with payment occurring mid-week.
This payment system requires franchisees to maintain sufficient funds in their designated bank account to cover the draft. Annex Brands is authorized to make adjustments for any erroneous transactions. Franchisees must also authorize Annex Brands to withdraw funds for other amounts owed, such as Association fees, expenses, equipment lease payments, and supply purchases, given prior written notice.
This weekly payment schedule and automatic withdrawal system ensures that Annex Brands receives royalty payments promptly. It also places a responsibility on the franchisee to accurately report sales and maintain adequate funds in their account to avoid any issues with the automatic payments. Franchisees should be aware of these requirements and plan their finances accordingly to avoid potential late fees or other penalties.