Is there a system-wide marketing fund administered by Annex Brands?
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. |
| Advertising association fee | Monthly, the greater of $150 or 1% of Gross Receipts (2) | 10 days after end of each calendar month or as otherwise provided by local or regional association bylaws | You must participate in a local or regional association. The board of directors of your association may also periodically impose special assessments on its members. You pay fees by automatic bank draft, either to the association or directly to us, at our option. (3) |
Source: Item 6 — OTHER FEES (FDD pages 24–32)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, they do administer a system-wide marketing fund. Franchisees are required to contribute 2% of their gross receipts to this fund. These payments are due each Wednesday, following the close of business on the previous Saturday, and must be paid via automatic bank draft.
It is important to note that this marketing fee is separate from other marketing-related expenses that Annex Brands franchisees may incur. Specifically, it is in addition to the new center/new owner marketing program deposit described in Item 5 and the continuing marketing program detailed in Item 11 of the FDD. Therefore, prospective franchisees should carefully review Items 5 and 11 to understand the full scope of their marketing obligations.
In addition to the system-wide marketing fund, franchisees must also participate in a local or regional advertising association, paying the greater of $150 or 1% of gross receipts monthly. This local advertising fee is separate from the 2% marketing fee that goes to the system-wide marketing fund. The local association may also impose special assessments on its members, adding to the overall marketing expenses for franchisees.