When submitting the application for an Annex Brands franchise, what banking information or documentation is required?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
In accordance with the franchise agreement between me and Annex Brands, Inc. ("COMPANY") and all other agreements between me and COMPANY or its affiliates, I hereby authorize COMPANY to withdraw funds by initiating entries to my account at the financial institution indicated above ("BANK"), and to initiate adjustments for any erroneous transactions, if necessary. Each Wednesday after the close of business or at such other interval established by COMPANY. I agree to submit a completed Unit Sales Report ("Report") to COMPANY each Saturday, after the close of business and before midnight, for the week ending that Saturday, or at such other interval established by COMPANY. COMPANY agrees that the amount due on the Report for royalty fees, marketing fees, and any other fees (but not national convention participation deposits or technology fees), including but not limited to fees for additional email accounts and insurance premiums, will be the amount withdrawn from my account on the following Wednesday or at such other interval established by COMPANY, unless COMPANY notifies me of an adjusted amount. National convention participation deposits and technology fees will be withdrawn each Tuesday from my account after the close of business or at such other interval established by COMPANY. I further authorize COMPANY to initiate entries for any amounts owed by me to COMPANY or its affiliates, including but not limited to amounts owed for Association fees and assessments, expenses, equipment lease or rental payments and/or supplies payments, purchases from COMPANY and/or its affiliates, interest, late fees, or any other indebtedness to COMPANY or its affiliates, on prior written notice to me. I authorize BANK to accept all entries by COMPANY to my account.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 Annex Brands Franchise Disclosure Document, franchisees must authorize Annex Brands to withdraw funds from their bank account for various fees. Specifically, franchisees authorize Annex Brands to withdraw funds for royalty fees, marketing fees, and other fees, excluding national convention participation deposits or technology fees, each Wednesday after the close of business. Franchisees also authorize Annex Brands to withdraw funds for national convention participation deposits and technology fees each Tuesday after the close of business.
Additionally, franchisees authorize Annex Brands to initiate entries for any amounts owed, including Association fees and assessments, expenses, equipment lease or rental payments, supplies payments, purchases from Annex Brands or its affiliates, interest, late fees, or any other indebtedness to Annex Brands or its affiliates, with prior written notice. This authorization allows Annex Brands to manage and collect payments efficiently, ensuring consistent revenue streams and covering various operational costs.
This process requires the franchisee to provide detailed banking information to Annex Brands, enabling these electronic transactions. The franchisee must submit a completed Unit Sales Report each Saturday, which serves as the basis for calculating the royalty and marketing fees to be withdrawn. This system ensures that Annex Brands can automatically collect the necessary fees, reducing administrative overhead and potential delays in payments. Franchisees should be aware of these automatic withdrawals and ensure sufficient funds are available in their account to avoid any penalties or disruptions.