ANNEX Franchise
Cost, fees, owner earnings, closure rate and litigation for a ANNEX franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
ANNEX discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
40 franchises open 12+ months: avg $659k gross volume (35% met/exceeded); median $420k. Gross margin avg 65%, median 63%. Excludes overhead, rent, wages, taxes, royalties.
What a ANNEX franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $35,000 | Item 5 — paid up front, before you open |
| Royalty | 6% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 3% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 9% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $131,580 – $201,130 | Item 7 — franchisor's own low/high estimate |
Weekly 6% royalty + 3% marketing fee + RMA 1%+; $5.5k deposit; $6.25k tech license; multiple other operating fees.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
ANNEX system size and owner turnover
| Total outlets | 56 |
| Ceased operations | 2 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 2 |
| Closure rate | 3.6% of outlets |
2 ceased operations; Handle With Care declined 20% (10→8 outlets)
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is ANNEX worth it? — how it compares to 59 similar franchises
| Ongoing fees | 9% of sales | steeper than 67% of retail & business services franchises |
| Startup cost | from $131,580 | cheaper than most (median $157,952) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 3.6% of outlets | about average |
| Disclosed lawsuits | 1 | about average |
Benchmarked against every retail & business services franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a ANNEX
The franchisor's framing: 40 franchises open 12+ months: avg $659k gross volume (35% met/exceeded); median $420k. Gr… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
ANNEX franchise — frequently asked
- How much does a ANNEX franchise cost?
- The FDD lists a total initial investment of about $131,580–$201,130, including a $35,000 initial franchise fee.
- How much do ANNEX franchise owners make?
- 40 franchises open 12+ months: avg $659k gross volume (35% met/exceeded); median $420k. Gross margin avg 65%, median 63%. Excludes overhead, rent, wages, taxes, royalties. We grade this disclosure C for honesty.
- What are the ANNEX franchise fees?
- ANNEX's FDD discloses a $35,000 initial franchise fee, a 6% royalty on gross sales, a 3% advertising-fund contribution, for roughly 9% of gross sales in recurring fees before rent, labor, or debt service. Weekly 6% royalty + 3% marketing fee + RMA 1%+; $5.5k deposit; $6.25k tech license; multiple other operating fees.
- What is the ANNEX franchise profit margin?
- ANNEX does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 40 franchises open 12+ months: avg $659k gross volume (35% met/exceeded); median $420k. Gross margin avg 65%, median 63%. Excludes overhead, rent, wages, taxes, royalties. Recurring fees alone take about 9% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the ANNEX franchise failure rate?
- 2 ceased operations; Handle With Care declined 20% (10→8 outlets)
- How many ANNEX locations are there?
- ANNEX's FDD reports 56 total outlets, with 2 that ceased operations in the most recent reporting year and 2 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does ANNEX have complaints or lawsuits?
- ANNEX discloses 1 legal matter in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a ANNEX franchise worth it?
- It depends on the numbers, not the pitch. ANNEX scores C on disclosure honesty, carries about 9% of sales in ongoing fees, and discloses 1 legal matters. Get the real owner take-home before you sign.
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Compare ANNEX to similar franchises
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Source: MN CARDS 35655-202603-11 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with ANNEX or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.