What are the specific requirements for a business to be considered a 'Commercial Logistics Center' by Annex Brands for the purposes of reduced franchise fees?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
For purposes of this Agreement, a "Commercial Logistics Center" is a commercial logistics business established and operated under a commercial brand (such as Navis Pack & Ship®, Handle with Care Packaging Store®, or Pak Mail FreightTM) owned or controlled by Franchisor, an affiliate of Franchisor or licensed to a franchisee which: offers custom packaging and shipping of items that are Difficult to Ship; may conduct business from a full-size, commercial warehouse-type facility, typically located in a light-industrial area; and may focus on the business-to-business market segment. "Difficult to Ship" items mean awkward, fragile, large or valuable items for which shipping solutions are not often readily available, such as art, antiques, computers, electronics, machinery, musical instruments and office equipment.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, a 'Commercial Logistics Center' has specific requirements. It must be a commercial logistics business operating under a brand owned or controlled by Annex Brands or its affiliates, or licensed to a franchisee, such as Navis Pack & Ship®, Handle with Care Packaging Store®, or Pak Mail FreightTM. These centers specialize in custom packaging and shipping of 'Difficult to Ship' items.
'Difficult to Ship' items are defined as awkward, fragile, large, or valuable items lacking readily available shipping solutions, including art, antiques, computers, electronics, machinery, musical instruments, and office equipment. These centers typically operate from full-size, commercial warehouse-type facilities, often located in light-industrial areas, and primarily focus on the business-to-business market segment.
Understanding these requirements is crucial for prospective franchisees, as it defines the scope and operational characteristics of a Commercial Logistics Center within the Annex Brands franchise system. This definition also clarifies the type of services offered and the target market, which can influence the franchisee's business strategy and operational setup. Furthermore, the location and facility requirements may impact the initial investment and ongoing operational costs.