Under what condition is the $350 transfer fee applicable when transferring an Annex Brands franchise?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer of franchise to your legal entity (12 & 13) | Currently, $350 | On or before the transfer | If you as (an) individual(s) transfer to a legal entity (corporation, limited liability corporation, partnership, trust, etc.) |
Source: Item 6 — OTHER FEES (FDD pages 24–32)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, a $350 transfer fee is applicable when an individual franchisee transfers ownership to a legal entity. This means that if you, as an individual, initially own the franchise and then decide to transfer the ownership to a corporation, limited liability company, partnership, or trust, you will be required to pay Annex Brands a transfer fee of $350. This fee must be paid on or before the date of the transfer.
This fee is specifically for transfers from an individual to a legal entity, and it is important to note that other types of transfers have different fee structures. For instance, a transfer of the franchise to an immediate family member incurs a fee of $750, while a general transfer of the franchise is calculated as 15% of the then-current non-discounted initial franchise fee.
It is also important to note that there are other fees associated with franchise ownership changes, such as an "Entity name change (non-transfer)" fee of $350 if a legal entity changes its name, and an "Ownership change (non-transfer)" fee of $350 if there is a change in ownership that does not result in a transfer of controlling interest. These fees highlight the importance of understanding the specific circumstances of any ownership change and consulting the franchise agreement for full details.