ANNEX BRANDS RETAIL CENTER

Franchising for nearly four decades from San Diego, Annex Brands boasts 565 locations total, though reporting shows just 339 active in 2024 expanding to 343 in 2025—a mere +1% growth rate signaling maturity rather than explosive scaling. Projected new units hit 80, with 49 system transfers indicating some churn but ongoing interest. The FDD's Item 7 pegs initial investment at $265,630-$370,330 including a $35,000 franchise fee, fitting 500-1,500 sq ft spaces. Ongoing fees include 5% royalty plus 2% brand/ad fund, layered with $300-$315 monthly fixed costs like software ($115/mo), tech services ($68-$74/mo), convention deposits ($100-$108/mo), and TV fees ($18/mo)—a predictable but accumulating burden.

Item 19 reveals average gross revenue of $368,000 and median $331,000, offering a realistic benchmark without EBITDA details, implying potential owner-operator profitability if costs are controlled in this service-heavy model. One red flag: a 2016 franchisee lawsuit alleging fraud and misrepresentation (dismissed), plus stagnant growth post-339 units, suggests caution amid e-commerce shipping booms favoring giants like UPS Stores. High transfer activity (49) hints at resale liquidity but possible dissatisfaction; still, long-term franchising track record and diverse services position it as a stable, if not high-growth, play for hands-on operators eyeing $300K+ top lines.