What was the total advertising expense for Annex Brands for the year ended September 30, 2022?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
g
The Company expenses advertising production costs as they are incurred and media placement costs the first time the advertising takes place. For the years ended September 30, 2024, 2023, and 2022, advertising expense totaled $2,496,000, $2,282,000, and $2,174,000, respectivel
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the total advertising expense for the year ended September 30, 2022, was $2,174,000. This figure represents the costs Annex Brands incurred for advertising production and media placement during that fiscal year. These expenses are recognized when the advertising production costs are incurred and when the media placement initially takes place.
For a prospective franchisee, understanding Annex Brands' advertising expenses is crucial. It provides insight into the company's investment in marketing and brand promotion, which can directly impact the franchisee's business. A significant advertising expenditure suggests that Annex Brands is actively working to build brand awareness and attract customers, potentially benefiting individual franchise locations.
However, franchisees should also inquire about the allocation of these advertising funds. It is important to determine how much is spent on national campaigns versus local advertising efforts that directly support franchisees. Understanding the strategy behind Annex Brands' advertising spending can help a franchisee assess the potential return on investment and the level of support they can expect in terms of marketing and customer acquisition.