What was the total number of Annex Brands outlets that ceased operations for reasons other than termination, non-renewal, or reacquisition by the franchisor in 2022?
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 |
Source: Item 20 — Outlets and Franchisee Information (FDD pages 78–109)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, a total of 10 Annex Brands outlets ceased operations for reasons other than termination, non-renewal, or reacquisition by the franchisor in 2022.
Specifically, the data shows that across all reporting states, there were instances where outlets closed for 'other reasons'. These reasons are not defined in the Item 20 data, but it excludes closures due to the franchise agreement being terminated by the franchisor, the franchisee choosing not to renew the agreement at the end of its term, or the franchisor buying back the franchise.
For a prospective franchisee, this information indicates the number of outlets that closed due to factors like abandonment, eviction, or failure to meet brand standards. Investigating the reasons behind these closures can provide valuable insights into potential challenges and risks associated with operating an Annex Brands franchise. It would be prudent to ask the franchisor for more details on what constitutes 'other reasons' and the specific causes of these closures to better assess the stability and potential pitfalls of owning a franchise.