Under what circumstances does an Annex Brands franchisee have to pay a non-transfer ownership change fee?

According to Annex Brands' 2025 Franchise Disclosure Document, a franchisee will have to pay a non-transfer ownership change fee if they seek to change less than a controlling ownership interest in the franchise. To do so, the franchisee must provide documentation as required by Annex Brands and execute all then-current documents required by Annex Brands. The fee is only required if these documents are not completed and delivered within 90 days after the opening of the Center, after the closing date of escrow on the Center after a transfer, or after the conversion of an existing business to a Center.

This means that if a franchisee wants to make a change to the ownership structure that does not involve transferring a controlling interest, they need to ensure all required documentation is submitted promptly. Failing to do so within the specified 90-day window will result in the imposition of a non-transfer ownership change fee. The specific amount of this fee is not detailed in this section, but it is described as the "then-current" fee, implying it may vary over time.

It is important for prospective Annex Brands franchisees to understand the implications of this policy. Any changes to the ownership structure, even minor ones, must be handled carefully and with close attention to deadlines to avoid incurring additional fees. Franchisees should maintain open communication with Annex Brands to ensure they are aware of all required documentation and any changes to the fee structure. This proactive approach can help franchisees manage their costs and maintain a positive relationship with the franchisor.