In which state did one Annex Brands outlet cease operations for other reasons during 2023?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Year | Outlets At Start Of Year | Outlets Opened | Termina- tions | Non- Renewals | Reacquired By Franchisor | Ceased Operations For Other Reasons | Outlets At End Of Year | |---|---|---|---|---|---|---|---|---| | AR | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | | | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | | | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | | AZ | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 | | | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 | | | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 | | CA | 2022 | 186 | 5 | 0 | 0 | 0 | 2 | 189 | | | 2023 | 189 | 6 | 0 | 0 | 0 | 4 | 191 | | | 2024 | 191 | 6 | 0 | 0 | 0 | 6 | 191 |
| State | Year | Outlets At Start Of Year | Outlets Opened | Termina- tions | Non- Renewals | Reacquired By Franchisor | Ceased Operations For Other Reasons | Outlets At End Of Year |
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Source: Item 20 — Outlets and Franchisee Information (FDD pages 78–109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, several states experienced an outlet closure for reasons other than termination, non-renewal, or reacquisition by the franchisor during 2023. Specifically, one Annex Brands outlet in each of the following states ceased operations for other reasons: Alabama, Colorado, Georgia, Maryland, Mississippi and North Carolina.
For a prospective franchisee, this information is valuable as it provides insight into the stability and potential challenges within the Annex Brands franchise system. Understanding the reasons behind these closures, though not specified in the data, is crucial for assessing the risks associated with investing in a particular location or market. Factors contributing to these closures could range from economic downturns to local market saturation or specific operational issues.
It is important to note that while the FDD provides data on outlet closures, it does not elaborate on the specific 'other reasons' for these closures. A prospective Annex Brands franchisee should engage in thorough due diligence, including direct communication with the franchisor and existing franchisees, to gain a deeper understanding of the factors that may lead to such closures and how to mitigate those risks. Investigating the specific circumstances surrounding these past closures can offer valuable lessons and inform business strategies.
By examining the broader trends in outlet performance across different states and years, potential franchisees can develop a more nuanced understanding of the Annex Brands franchise system and make informed decisions about their investment. This information, combined with additional research and consultation with industry experts, can contribute to a more comprehensive risk assessment and increase the likelihood of success as an Annex Brands franchisee.