Annex Brands Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$29,950
Investment required
$34,000-$320,000
Royalty fee
5.00%

Annex Brands: Leading the Way in Comprehensive Shipping and Business Services

Annex Brands, Inc. is a prominent player in the shipping and business services industry, providing a comprehensive suite of services through its multiple retail brands. The company was originally founded in 1985 as Postal Annex+ by Jack and Marty Lentz. Headquartered in San Diego, California, Annex Brands has grown substantially over the decades. 

In 2007, the company rebranded to Annex Brands, Inc. following the acquisition of Handle With Care Packaging Store, reflecting its expanded scope of operations and multi-brand strategy. Annex Brands operates multiple locations across the United States, Canada, Mexico, and Japan. 

These locations, which include well-known brands such as PostalAnnex+, Pak Mail, AIM Mail Centers, Navis Pack & Ship, Handle With Care Packaging Store, Parcel Plus, and Sunshine Pack & Ship, offer a variety of shipping options, from small parcels to freight, along with a range of office services like mailbox rentals, notary public services, and printing. 

This diversity allows Annex Brands to cater to both individual and business customers, setting it apart from competitors that typically focus on a narrower range of services.

The company began franchising in the same year it was founded, demonstrating a robust franchise model that has proven successful for nearly four decades. Today, each franchise location is independently owned and operated, providing franchisees with the support and flexibility needed to thrive in various markets.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Annex Brands offers 3 types of franchises:

Type of Retail Center Initial Investment
Annex Brands Retail Center - Standard & Flex $226,080 - $319,780
Retail Center – Standard & Flex Conversion $33,555 - $243,805
Retail Center - Express $93,605 - $209,905

We are summarizing below the main costs associated with opening a new Annex Brands Retail Center - Standard & Flex franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Annex Brands Retail Center - Standard & Flex

Type of Expenditure Amount
Initial franchise fee $29,950
Fixtures $40,000 - $50,000
Mailboxes $14,000 - $16,000
Package lockers $3,500
Flooring $6,000 - $9,000
Interior signage $1,000 - $2,500
Exterior signage $6,000 - $8,000
Construction services $60,000 - $85,000
Construction consultation fee, if applicable (7)
Equipment $4,000 - $6,500
Computer hardware, and software programs and licenses $4,500 - $13,000
Initial inventory $5,000 - $7,000
Insurance $2,500 - $7,000
Online financial training portal license and administrative fee $330
Travel, lodging and meals for initial training $1,000 - $4,000
New Center/New Owner Marketing Program deposit $5,500
Supplies $1,000 - $2,500
Business licenses, business permits, etc. $300 - $1,000
Deposits and pre-paid expenses $10,500 - $15,000
Architect fee $4,000 - $6,000
Miscellaneous expenditures $2,000 - $3,000
Additional funds (1st 12 months) $25,000 - $50,000
TOTAL $226,080 - $319,780

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Number of units

2024
Franchised units

292

301

305

Company-owned units

0

0

0

Total units

292

301

305

Franchise Disclosure Document

Training 

Annex Brands provides a comprehensive training program designed to equip new franchisees with the essential tools and knowledge needed to successfully run their business. The training begins with up to 10 days of intensive interactive learning at the Annex Brands corporate office in San Diego, California. 

This initial phase includes a mix of classroom instruction, role-playing, and hands-on practice, covering crucial aspects of operating procedures, product and service offerings, and the robust proprietary shipping and point-of-sale systems used by Annex Brands franchises.

In addition to the initial training, Annex Brands offers ongoing support through various channels. This includes periodic store visits by the Operations Support team, regional meetings, national conventions, and continuous remote support via telephone and the company’s online intranet. 

The online support platform provides access to a wealth of resources, including a bulletin board for franchisee discussions and a library of marketing and operational tools, ensuring that franchisees can always find the information they need to address any challenges that arise.

Annex Brands also places a strong emphasis on continuous learning and development. They provide additional training at national conventions and during store visits to help franchisees refine their skills and stay updated with the latest business practices and marketing strategies. 

Territory Protection

Annex Brands provides its franchisees with specific territory protection to help ensure their business success. This protection means that each franchisee is granted a defined geographical area where no other Annex Brands franchise can operate, minimizing direct competition among its franchise locations. 

This approach helps franchisees to establish a stable customer base and build their business without the concern of nearby franchised locations encroaching on their market.

The designated territory is typically outlined in the franchise agreement and is designed to protect the franchisee's investment and promote long-term growth. By offering this type of territory protection, Annex Brands supports its franchisees in achieving profitability and sustaining their business in a competitive market. 

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