Annex Brands Retail Centers

What specific factors are driving the 100% increase in unit closures from 2023 (12 units) to 2025 (24 units)?

Can you provide detailed information on the reasons franchisees are exiting the system through transfers (49 transfers in 2025)?

What support or intervention strategies have been implemented in response to the rising closure trend?

Are there specific geographic regions or unit types experiencing higher closure rates than others?

How does the current closure rate compare to historical averages for this franchise system before 2023?

What is the financial performance range for units that are closing versus those that are transferring?

Does the franchise provide any financial assistance or turnaround support to underperforming units before closure?

Can you clarify what is categorized as 'Ceased Other' in the exit data, and how frequently this occurs?

What renewal rate or non-renewal rate data is available, and how do these compare to the closure and transfer rates?

Are there specific contractual or performance metrics that trigger franchisor intervention in struggling units?

What percentage of transferred units remain within the franchise system versus being sold to third parties?

How many units have been in operation for less than 2 years, and what is their closure/exit rate compared to mature units?

Can you provide Item 19 financial performance data, specifically median or average gross sales for operating units?

What are the current unit count targets, and is the stable unit count of 565-568 aligned with system growth objectives?

Are there any pending or recent litigation cases that may be contributing to unit exits or transfers?

What is the average lifespan of a franchisee relationship, and what percentage of franchise agreements reach renewal?

How does the transfer fee structure impact the decision of franchisees to transfer versus close their units?