What specific services must the 'qualifying existing business' provide to be eligible for conversion to an Annex Brands franchise?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Center will be converted from a qualifying existing business providing the same services to the public, architectural plans may not be required and Franchisee will not be required to pay an architect fee.
-
- Pay a $3,000 deposit for a standard, flex or express Center to Franchisor before or during initial training, which Franchisor agrees to use to pay the cost of building permits for the Center; provided that Franchisor will refund any underage to Franchisee or bill any overage to Franchisee.
If the Center will be converted from a qualifying existing business providing the same services to the public, building permits may not be required and Franchisee will not be required to pay a building permit deposit.
If the Center will be converted from a qualifying existing business providing the same services to the public, building permits may not be required and Franchisee will not be required to pay a building permit deposit.
d) $13,125 if this Agreement is for a Center that will be converted from a qualifying existing business providing the same services to the public and the Franchisee qualifies for the VetFran discount; provided, however, that Franchisee will also pay to Franchisor a conversion training fee of $4,000; and provided further that the Center must be operational within 365 days after this Agreement is signed and must be owned and operated by Franchisee for a minimum of 1 year thereafter; and provided further that if the Center is sold before the completion of 1 year of operation, Franchisee must pay to Franchisor the discounted amount of the initial franchise fee ($21,875) upon sale of the Center; or
g) $5,000 if Franchisee already owns and operates at least 1 Center or 1 Commercial Logistics Center and this Agreement is for a standard Center or flex Center that will be converted from a qualifying existing business providing the same services to the public; provided that the Center must be operational within 365 days after this Agreement is signed and must be owned and operated by Franchisee for a minimum of 1 year thereafter; and provided further that if the Center is sold before the completion of 1 year of operation, Franchisee must pay to Franchisor the discounted amount of the initial franchise fee ($30,000) upon sale of the Center; or
WHEREAS, Franchisor has expended time, skill, money, and effort to develop a unique business system, substantial know-how and confidential information for establishing and operating standard and express retail businesses providing business support, mailbox rental (physical and virtual), package receiving, postal, printing, copying, packaging, shipping, office supply, passport photo, notary, fingerprinting, and related products and services, and flex retail businesses providing some of the services of standard and express retail businesses, as well as crating, pick-up and delivery services, and boxes and packaging materials (collectively the "System"); in this Agreement, each such retail business is called a "Center", collectively such retail businesses are called "Centers"; and the particular retail business authorized by this Agreement is called "the Center."
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 Annex Brands Franchise Disclosure Document, a qualifying existing business must provide the same services to the public as an Annex Brands franchise to be eligible for conversion. These services include business support, mailbox rental (both physical and virtual), package receiving, postal services, printing, copying, packaging, and shipping. Additionally, they offer office supplies, passport photos, notary services, and fingerprinting. Flex retail businesses may also provide crating, pick-up and delivery services, and boxes and packaging materials.
Converting an existing business to an Annex Brands franchise can offer certain advantages. For instance, building permits and architectural plans may not be required, potentially saving the franchisee from paying associated fees and deposits. Specifically, the document mentions that architectural plans may not be required, and the franchisee will not be required to pay an architect fee, which ranges from $4,000 to $6,000 for a standard or flex Center, or $0 to $4,000 for an express Center. Similarly, building permits may not be required, and the franchisee will not be required to pay a building permit deposit of $3,000 for a standard, flex, or express Center.
Furthermore, the initial franchise fee may be discounted for qualifying existing businesses. For example, the initial franchise fee is $5,000 if the agreement is for a standard or flex Center converted from a qualifying existing business, provided the franchisee already owns and operates at least one Center or Commercial Logistics Center. However, the Center must be operational within 365 days after signing the agreement and must be owned and operated by the franchisee for at least one year. If the Center is sold before completing one year of operation, the franchisee must pay Annex Brands the discounted amount of the initial franchise fee ($30,000) upon the sale.
It is important to note that even with a conversion, the franchisee will still need to purchase required trade dress fixtures, furnishings, and equipment from suppliers approved or designated by Annex Brands. A deposit ranging from $2,000 to $15,000 may be required for a conversion standard or flex Center, based on the geographical location and the type and amount of fixtures and equipment needed. Additionally, a non-refundable amount is payable when the franchisee's order is placed for a retail fixtures and equipment package, with the cost varying based on the type and amount of fixtures and equipment needed.