What trade dress items may Annex Brands require franchisees to purchase directly from them or their affiliates?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Certain trade dress fixtures, equipment, supplies, other merchandise and services may be required to be purchased directly from Franchisor and/or its affiliates, or may be permitted to be purchased from other suppliers provided Franchisor is held harmless by Franchisee regarding any products liability cause of action. On items or services sold by Franchisor and/or its affiliates, Franchisor anticipates a reasonable profit to cover overhead expenses.
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- Purchase from suppliers approved or designated by Franchisor (which may include solely Franchisor and/or its affiliates) all required trade dress fixtures, furnishings and equipment for the Center, it being agreed and acknowledged by Franchisee that: (a) Franchisee will be required to pay Franchisor a $10,500 to $15,000 deposit for a new standard, flex or express Center, or a $2,000 to $15,000 deposit for a conversion standard or flex Center (based on the geographical location of the Center, and the type and amount of fixtures and equipment needed), before or at initial training, to cover the cost of shipping fixtures and equipment to Franchisee (which deposit is partially refundable if shipping costs less than the deposit), and Franchisee will be required to pay to Franchisor any shipping costs exceeding the deposit promptly after shipping takes place; and (b) Franchisee will be required to purchase from Franchisor a retail fixtures and equipment package (including all trade dress fixtures, mailboxes, package lockers and flooring for a standard, flex or express Center) for a non-refundable amount that varies based on the type and amount of fixtures and equipment needed, the cost of which is payable when Franchisee's order is placed.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees may be required to purchase certain trade dress fixtures, equipment, supplies, other merchandise, and services directly from Annex Brands and/or its affiliates. Alternatively, franchisees may be permitted to purchase these items from other suppliers, provided that the franchisee holds Annex Brands harmless regarding any products liability cause of action. Annex Brands anticipates a reasonable profit on items or services sold by them or their affiliates to cover overhead expenses.
Specifically, Annex Brands requires franchisees to purchase all required trade dress fixtures, furnishings, and equipment for the Center from suppliers approved or designated by Annex Brands, which may include Annex Brands and/or its affiliates. Franchisees are required to pay a deposit ranging from $10,500 to $15,000 for a new standard, flex, or express Center, or a $2,000 to $15,000 deposit for a conversion standard or flex Center, based on the geographical location of the Center and the type and amount of fixtures and equipment needed. This deposit is to cover the cost of shipping fixtures and equipment to the franchisee and is partially refundable if shipping costs less than the deposit. Franchisees must also purchase a retail fixtures and equipment package, including all trade dress fixtures, mailboxes, package lockers, and flooring, for a non-refundable amount that varies based on the type and amount of fixtures and equipment needed, payable when the order is placed.
This requirement ensures uniformity across all Annex Brands locations, maintaining a consistent brand image. While purchasing from approved suppliers, including Annex Brands, may ensure quality and compliance with brand standards, it may also limit the franchisee's options and potentially increase costs. Prospective franchisees should carefully consider these requirements and the associated costs when evaluating the Annex Brands franchise opportunity.