According to the Annex Brands franchise agreement, who owns the 'Marks'?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisor has expended time, skill, money and effort to publicize the System and the products and services offered under the System. Franchisor has developed and will continue to develop valuable goodwill in the maintenance and use of its service marks, trademarks, trade names, and trade dresses by it and its authorized franchisees, and has developed or acquired, or may develop or acquire, other service marks, trademarks, trade names, trade dresses and identifiers for use under the System, all of which trademarks, service marks, trade names, trade dresses and identifiers are, and will remain, Franchisor's sole property (collectively the "Marks").
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, Annex Brands retains sole ownership of its trademarks, service marks, trade names, and trade dresses, collectively referred to as the "Marks". The franchise agreement emphasizes that these Marks are and will remain the exclusive property of Annex Brands.
This means that as a franchisee, you are granted the right to use these Marks solely for operating your franchised center, but you do not acquire any ownership or proprietary rights to them. Your usage is strictly licensed and subject to the terms and conditions outlined in the franchise agreement. This is a standard practice in franchising, as the franchisor needs to maintain consistent brand standards and protect its intellectual property.
The agreement also states that Annex Brands has invested significant resources in developing and publicizing the System and the products and services offered under it. This investment has created valuable goodwill associated with the Marks. As a franchisee, you benefit from this established brand recognition and goodwill, but you also have a responsibility to adhere to Annex Brands' standards to maintain the integrity of the Marks. Failure to do so could result in termination of your franchise agreement and loss of the right to use the Marks.
Prospective franchisees should understand that the value of a franchise system is often tied to the strength and recognition of its trademarks. Annex Brands' control over its Marks ensures uniformity and quality across all franchised locations, which ultimately benefits both the franchisor and the franchisees. However, it also means that franchisees must operate within the guidelines set by Annex Brands to protect the brand's reputation.