Annex Brands Commercial Logistics Centers

The advertising fund rate of 3.0% is above the typical range of 1.0-2.75% for this franchise type. What specific marketing initiatives and channels does this fund support, and how is the fund's effectiveness measured?

There is 1 pending litigation case with the franchisor as defendant. Can you provide details about the nature of this case, the filing date, and the expected timeline for resolution?

The franchise has recorded 2 cases where the franchisor was named as defendant (above the typical range of 0.0-1.0). What were the outcomes of the completed case, and what were the primary allegations?

The initial franchise term of 20 years is significantly longer than the typical 5.0-10.0 years. What is the rationale for this extended commitment period, and what protections exist if the franchisee wishes to exit before the 20-year term expires?

The renewal option extends an additional 20 years for a total potential 40-year commitment. Are there circumstances under which the franchisor can decline renewal, and what are the specific 7 conditions referenced in the renewal clause?

The franchise agreement lists 25 termination causes, which exceeds the typical range of 12.0-21.0. Can you provide a categorized breakdown of these 25 causes and clarify which are material vs. minor violations?

Minimum gross volume requirements are $150,000 (year 1), $250,000 (year 2), and $400,000 (year 3). What happens if a franchisee falls short of these targets in any year, and are there consequences beyond financial penalties?

The franchise requires personal guarantees from all shareholders, members, principal officers, partners, and spouses. Under what circumstances would the franchisor enforce these personal guarantees, and are there any limitations on the scope?

All disputes except trademark claims and injunctive relief must be resolved through binding arbitration in San Diego, California, with class actions prohibited. Has the franchisor previously pursued arbitration against franchisees, and what were the typical costs and timelines?

The non-compete clause restricts franchisees for 2 years within 15 miles after termination or expiration. How strictly has the franchisor enforced this restriction, and are there documented cases of legal action against former franchisees?

The system closed 4 units in 2022 and 2 units in 2023 but zero in 2024. What were the stated reasons for these closures, and did any involve franchisor support issues or market conditions?

Financial performance data shows median gross sales of $470,000 but average of $671,000, a significant gap. What is the distribution of unit profitability, and what percentage of units meet or exceed the average?

The franchise requires purchases of designated equipment, products, and services from approved suppliers only. Does the franchisor derive revenue from these supplier relationships, and are there volume discounts or negotiation flexibility?

Late fees equal the greater of $35 or 10% of the amount due, plus 1.5% monthly interest (18% annually). How frequently do franchisees incur late fees, and what is the average amount collected annually?

The transfer fee is $5,250 and the renewal fee is $8,500. Are these fees waived or reduced under any circumstances, and has the franchisor increased these fees for existing franchisees?

The territory is protected but non-exclusive. Can the franchisor open additional company-owned or franchised units within your territory, and under what conditions?

Support & Training scores 95/100, significantly above the typical range. What specific training and ongoing support does this score reflect, and how are these services delivered?

The net unit growth was only 1 unit in the past year with the system at 58 units. What is the franchisor's growth strategy, and how many new units are projected for the next 3 years?