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Description
Investment Icon

What is the Initial Investment for an Annex Brands Retail Center Franchise?

To start your journey with an Annex Brands Retail Center franchise, you should prepare for a range of initial investment costs. The franchise fee is set at $14,975, with total initial investments varying between $33,555 and $319,780. It's essential to have cash on hand, which can range from $33,555 to $243,805, and a net worth of between $200,000 and $500,000. This financial foundation is crucial for securing your franchise and ensuring you can cover operational costs as you get started.

Fees Icon

What Are the Ongoing Fees Associated with an Annex Brands Franchise?

Owning an Annex Brands Retail Center franchise comes with ongoing fees that you'll need to budget for. There's a royalty fee of 5% on your gross sales, along with a marketing fee of 2%. These fees contribute to the overall operational support and brand marketing efforts, helping to drive customer engagement and sales. Being aware of these fees will help you manage your cash flow effectively as you grow your business.

Revenue Icon

What is the Average Revenue Potential for an Annex Brands Retail Center Franchise?

The revenue potential for an Annex Brands Retail Center franchise is notable, with an average annual revenue of $382,000 per unit. The median annual revenue is slightly lower at $342,000, while revenues can range significantly, from as low as $43,000 to as high as $1,530,300. Understanding these figures can help you set realistic financial goals and expectations as you plan for your franchise's growth.

Breakeven Icon

How Quickly Can You Expect to Break Even with an Annex Brands Franchise?

When investing in an Annex Brands Retail Center franchise, it's important to know the financial timeline. Franchisees can expect to reach breakeven within approximately 12 months. Additionally, the investment payback period is around 8 months, which indicates a relatively quick return on your initial investment. This timeline can be an encouraging factor for aspiring franchise owners looking to achieve profitability in a competitive market.

Annex Brands Retail Centers Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$200,000 - $500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

8 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$14,975
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

2%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$33,555 - $319,780
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$33,555 - $243,805
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$382,000
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$342,000
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,530,300
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$43,000
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Business Services Franchises
Category icon A more specific division within the broader industry.

i Category:

Shipping & Packaging
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Patrick Edd
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

7580 Metropolitan Dr., #200 San Diego, CA 92108
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

1996
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

J & G Roberts Enterprises, LLC

Annex Brands Retail Centers Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

176
The number of locations owned by independent franchisees.

Franchised Units i

176
The number of locations owned and run by the franchisor.

Corporate Units i

0
Units 2021 2022 2023
Total Units 182 180 176
Net Change YoY -2 -4
Franchised Units 181 180 176
Net Change YoY -1 -4
Corporate Units 1 0 0
Net Change YoY -1 0
Investment About

Initial Investment

The Annex Brands Retail Centers franchise offers a range of initial investment options, with costs varying from $33,555 to $319,780. This flexibility allows aspiring franchisees to assess their financial capabilities and choose an investment level that aligns with their business goals. The initial franchise fee is set at $14,975, making it accessible for those looking to enter the franchise market.

Potential About

Ongoing Fees

Franchisees are required to pay a royalty fee of 5% on gross sales, along with a marketing fee of 2%. These ongoing fees contribute to the overall support and resources provided by the franchisor, ensuring that franchisees can effectively promote their business while benefiting from the brand’s established reputation.

Metrics About

Financial Performance

The average annual revenue per unit for Annex Brands Retail Centers is approximately $382,000, with a median revenue of $342,000. This financial performance indicates strong earning potential for franchisees, with some units generating as much as $1,530,300 annually. Understanding these figures can help prospective franchisees evaluate the viability of their investment.

Fees About

Breakeven and Payback

Franchisees can expect to reach breakeven within 12 months of operation, which is a favorable timeframe for new business owners. Additionally, the average investment payback period is around 8 months, allowing franchisees to recoup their initial investment relatively quickly and start generating profit sooner.

Breakeven About

Franchise Growth

As of 2023, the Annex Brands Retail Centers franchise has a total of 176 franchised units, down from 181 in 2021. This slight decline in the number of units may reflect market adjustments or strategic changes within the franchise system. Understanding growth trends is essential for potential franchisees when assessing the brand's stability and future prospects.

Units About

Corporate Structure

Annex Brands operates under a well-defined corporate structure, with a focus on supporting its franchisees through various resources and training programs. The company emphasizes a collaborative approach, ensuring that franchisees have access to the tools and guidance necessary for successful operations, which is critical for long-term growth and sustainability in the competitive retail landscape.

Frequently Asked Questions

The initial investment for an Annex Brands franchise ranges from $33,555 to $319,780, which includes the franchise fee of $14,975.