Under what circumstances will Annex Brands refund a portion of the shipping deposit to the franchisee?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
You must deposit with us, before or at initial training, $10,500 to $15,000 for a new standard, flex or express retail center. For a conversion standard or flex retail center, you must deposit with us, before or at initial training, $2,000 to $15,000. These ranges are based on the geographical location of your retail center, and the type and amount of fixtures and equipment needed. We will use the deposit to pay the cost of shipping fixtures and equipment to your retail center. We will partially refund the deposit to you if shipping costs less than the deposit. If shipping costs more than the deposit, we will bill you for the overage. The deposit is uniform for all franchisees. See Item 7.
Source: Item 5 — Initial Fees (FDD pages 18–24)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, a franchisee may receive a partial refund of their shipping deposit. Annex Brands requires a shipping deposit of $10,500 to $15,000 for a new standard, flex, or express retail center, and $2,000 to $15,000 for a conversion standard or flex retail center. These amounts depend on the retail center's geographical location, and the type and amount of fixtures and equipment needed.
The shipping deposit is used to cover the costs of shipping fixtures and equipment to the franchisee's retail center. If the actual shipping costs are less than the deposit amount, Annex Brands will refund the difference to the franchisee.
However, if the shipping costs exceed the deposit, the franchisee will be billed for the overage. This means franchisees should be prepared to potentially pay more than the initial deposit if shipping expenses are higher than anticipated. The shipping deposit policy applies uniformly to all Annex Brands franchisees.