How are the royalty and marketing fees 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) |
| Marketing fee (4) | 2% 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) We administer a system-wide marketing fund. |
| Advertising association fee | Monthly, the greater of $150 or 1% of Gross Receipts (2) | 10 days after end of each calendar month or as otherwise provided by local or regional association bylaws | You must participate in a local or regional association. The board of directors of your association may also periodically impose special assessments on its members. You pay fees by automatic bank draft, either to the association or directly to us, at our option. (3) |
Source: Item 6 — OTHER FEES (FDD pages 24–32)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the royalty and marketing fees are paid weekly via automatic bank draft. Specifically, the royalty fee is 5% of Gross Receipts, and the marketing fee is 2% of Gross Receipts.
The franchisee must report Gross Receipts each Saturday after the close of business before midnight for the week ending on that Saturday. Payment is then due each Wednesday after the close of business for the previous week ending Saturday. Annex Brands may establish other due dates.
In addition to royalty and marketing fees, franchisees must also participate in a local or regional advertising association. The advertising association fee is paid monthly and is the greater of $150 or 1% of Gross Receipts. This fee is due 10 days after the end of each calendar month, or as otherwise provided by local or regional association bylaws. Payment is made via automatic bank draft, either to the association or directly to Annex Brands, at their option. The board of directors of the association can also periodically impose special assessments on its members.