What transfer fee is required for an Annex Brands franchise transfer, in lieu of an initial fee?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Except as provided in this Agreement, in lieu of an initial fee, Franchisee or the transferee must pay Franchisor a transfer fee of 15% of the then-current non-discounted initial franchise fee for a standard Center.
If Franchisee or transferee qualifies for the International Franchise Association's VetFran Program, a 25% discount will be applied to the transfer fee.
In no event will more than one VetFran discount be applied to the transfer fee.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, a transfer fee is required in lieu of an initial franchise fee when a franchise is transferred. This transfer fee is 15% of the then-current non-discounted initial franchise fee for a standard Annex Brands center.
However, there is a potential discount available. If either the franchisee or the transferee qualifies for the International Franchise Association's VetFran Program, a 25% discount will be applied to the transfer fee. It is important to note that only one VetFran discount can be applied to the transfer fee.
In addition to the transfer fee, the transferee must deposit $5,500 with Annex Brands to be used for a new marketing program for the center. The transferee may also need to pay a $4,000 training and processing fee to Annex Brands before attending initial training or before the transfer, as well as any then-current license fees associated with pre-training or post-training requirements (such as the current one-time 12-month license and administrative fee of $330 for the online financial training portal).