Under what condition does Annex Brands require a construction consultation fee to be paid?

According to Annex Brands' 2025 Franchise Disclosure Document, a construction consultation fee of $2,500 is required if a franchisee chooses to use a contractor other than the one designated by Annex Brands for the build-out of their retail center. This is contingent on Annex Brands approving the substitute contractor.

This fee is non-refundable and applies uniformly to all franchisees who opt to use an alternative contractor. The fee must be paid before construction begins. This policy ensures that Annex Brands has the opportunity to review and approve any contractor not directly affiliated with them, likely to maintain brand standards and quality control during the construction process.

For a prospective Annex Brands franchisee, this means that while they have the option to select their own contractor, doing so will incur an additional $2,500 fee. This fee is separate from the construction services fee paid to Annex Brands' designated contractor, which can range up to $90,000 for a new standard or flex retail center, up to $60,000 for a conversion standard or flex retail center, or up to $50,000 for a new express retail center. Franchisees should weigh the benefits of choosing their own contractor against the additional cost and the potential impact on project timelines, as Annex Brands' approval is required.

It is important for potential franchisees to consider this fee when budgeting for the initial setup costs. They should also inquire about the criteria Annex Brands uses to approve substitute contractors to ensure they can meet those requirements if they choose to use their own contractor. Additionally, franchisees should review Items 7, 8, and 11 of the FDD, as referenced in Item 5, for further details regarding construction and related fees.