Does Annex Brands specify how the system-wide marketing fund is used?
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. |
Source: Item 6 — OTHER FEES (FDD pages 24–32)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees must pay a marketing fee of 2% of Gross Receipts, which is collected each Wednesday. Annex Brands administers a system-wide marketing fund with these fees. However, the FDD does not specify exactly how Annex Brands uses the system-wide marketing fund.
Item 6 includes a note clarifying that this marketing fee is separate from the new center/new owner marketing program deposit described in Item 5 and the continuing marketing program described in Item 11. This indicates that Annex Brands has different marketing initiatives that are funded separately.
Prospective franchisees should inquire with Annex Brands about the specific details of how the system-wide marketing fund is used, what marketing activities are supported by the fund, and what benefits franchisees can expect to receive from these marketing efforts. Understanding the allocation of the marketing fund is crucial for evaluating the value and potential return on investment of the franchise.