Is there a cap on the amount of the Marketing fee that Annex Brands can charge?
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. (3) We administer a system-wide marketing fund. |
Source: Item 6 — OTHER FEES (FDD pages 24–32)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the marketing fee is 2% of gross receipts. This fee is collected each Wednesday, after the close of business, for the previous week ending Saturday. Franchisees must report gross receipts each Saturday after the close of business before midnight for the week ending on that Saturday and must pay Annex Brands by automatic bank draft.
Annex Brands administers a system-wide marketing fund with these marketing fees. The FDD does not specify a maximum amount that Annex Brands can charge for the marketing fee, as it is directly tied to the franchisee's gross receipts.
It is important to note 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 of the FDD. Franchisees should review Items 5 and 11 for further details on these additional marketing-related expenses.