What specific actions are considered 'participation' in a local or regional association for Annex Brands franchisees?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| 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, franchisees are required to participate in a local or regional advertising association. This participation includes paying an advertising association fee. The fee is the greater of $150 or 1% of the franchisee's Gross Receipts on a monthly basis. The due date for this fee is 10 days after the end of each calendar month, but this may vary based on the local or regional association's bylaws.
Annex Brands franchisees must make these payments via automatic bank draft, either directly to the association or to Annex Brands, depending on Annex Brands' preference. In addition to the standard advertising association fee, the board of directors of the local or regional association has the authority to impose special assessments on its members periodically.
Therefore, 'participation' in the local or regional association, at a minimum, involves paying the required fees and any special assessments levied by the association's board. While the FDD specifies the financial obligations, it does not detail other forms of participation, such as attending meetings, voting, or serving on the board. A prospective franchisee should inquire with Annex Brands about what other activities beyond fee payment constitute 'participation' in these associations to fully understand their obligations.