What is the standard initial franchise fee for a standard or flex Annex Brands Center?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
8. FEES
- A. INITIAL FRANCHISE FEE; CONVERSION TRAINING FEE. The initial franchise fee and any applicable conversion training fee are due and payable when this Agreement is executed and are non-refundable except as described below:
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- Initial Franchise Fee for a Standard Center or Flex Center. If this Agreement is for a standard Center or flex Center, Franchisee will pay to Franchisor an initial franchise fee of:
- a) $35,000; or
- b) $26,250 if Franchisee qualifies for the VetFran discount; 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 ($8,750) upon sale of the Center; or
- c) $17,500 if this Agreement is for a Center that will be converted from a qualifying existing business providing the same services to the public; 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 ($17,500) upon sale of the Center; or
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- 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
- e) $17,500 if Franchisee already owns and operates at least 1 Center or 1 Commercial Logistics Center;
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the standard initial franchise fee for a standard or flex center is $35,000. However, the FDD outlines a few scenarios where this fee may be reduced.
One such scenario is the VetFran discount, where qualifying veterans can pay a reduced initial franchise fee of $26,250. To qualify, the Annex Brands center must be operational within 365 days of 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 $8,750 upon the sale.
Another scenario involves converting a qualifying existing business into an Annex Brands center. In this case, the initial franchise fee is $17,500, along with a $4,000 conversion training fee. Similar to the VetFran discount, the center must be operational within 365 days and owned/operated for at least one year. Selling before the one-year mark requires paying Annex Brands the discounted initial franchise fee amount of $17,500. If a franchisee already owns and operates at least one Annex Brands Center or Commercial Logistics Center, the initial franchise fee for converting a qualifying existing business to a standard or flex center is $5,000. If the center is sold before one year of operation, the franchisee must pay Annex Brands the discounted amount of $30,000.