What is the standard initial franchise fee for a standard or flex retail center for Annex Brands?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Standard and Flex Retail Centers. The initial franchise fee is due when you sign the franchise agreement. Except in the circumstances described below, the initial franchise fee is $35,000, and is uniform for all standard and flex retail centers.
If you are an honorably-discharged veteran of the U.S. armed forces and meet our requirements, under our participation in the International Franchise Association's VetFran Program, we will discount the initial franchise fee by 25% ($8,750), and you will pay us a $26,250 initial franchise fee.
If you already own and operate one of our retail centers or one of our Commercial Logistics Centers (see our Commercial Logistics Center Franchise Disclosure Document for more information), we will discount the initial franchise fee by 50% ($17,500), and you will pay us a $17,500 initial franchise fee for your 2nd or further additional retail center. However, if you are an honorably-discharged veteran of the U.S. armed forces and meet our requirements, under our participation in the International Franchise Association's VetFran Program, we will discount the initial franchise fee by an additional 25% ($4,375), and you will pay us an $13,125 initial franchise fee.
If an existing business qualifies (see below) to convert to one of our retail centers, we will discount the initial franchise fee by 50% ($17,500), and you will pay us a $17,500 initial franchise fee and a $4,000 conversion training fee (see more information below). However, if you are an honorably-discharged veteran of the U.S. armed forces and meet our requirements, under our participation in the International Franchise Association's VetFran Program, we will discount the initial franchise fee by an additional 25% ($4,375), and you will pay us an $13,125 initial franchise fee.
Source: Item 5 — Initial Fees (FDD pages 18–24)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the standard initial franchise fee for a standard or flex retail center is $35,000. This fee is due when the franchise agreement is signed and is generally uniform for all standard and flex retail centers, although there are some exceptions that may reduce this fee.
Annex Brands offers a reduced initial franchise fee of $26,250 for honorably discharged veterans of the U.S. armed forces who meet their requirements, representing a 25% discount ($8,750) under the International Franchise Association's VetFran Program. Additionally, existing Annex Brands franchisees who already operate a retail center or a Commercial Logistics Center can receive a 50% discount ($17,500), paying only $17,500 for their second or subsequent retail center. If that existing franchisee is also a veteran, they can combine these discounts and pay an initial franchise fee of $13,125.
Furthermore, Annex Brands offers a discounted initial franchise fee of $17,500 for those converting an existing business into one of their retail centers, along with a $4,000 conversion training fee. This discount is also available to honorably discharged veterans, who would then pay an initial franchise fee of $13,125. The FDD outlines specific factors Annex Brands considers when determining if a business qualifies for conversion, including location, services offered, operating history, and adaptability to the Annex Brands system. These factors ensure that the business aligns with Annex Brands' standards and operational model.
It is important to note that the initial franchise fee is generally non-refundable, compensating Annex Brands for administrative expenses and lost opportunities. However, a partial refund (minus $10,000 and any out-of-pocket expenses) may be available if Annex Brands terminates the franchise agreement before or during initial training due to the franchisee's inability to complete training successfully. Additionally, if a suitable site is not located or the retail center does not open within 365 days of signing the franchise agreement (unless the delay is caused by Annex Brands or the site owner), Annex Brands may terminate the franchise, potentially affecting the refund of the initial fee.