According to the Annex Brands franchise agreement, can a waiver be withdrawn?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
B. WAIVER OF OBLIGATIONS. Franchisor and Franchisee may by written instrument waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon giving written notice thereof to the other or upon such other effective date stated in the notice of waiver. Any waiver granted by Franchisor will be without prejudice to any other rights Franchisor may have, will be subject to continuing review by Franchisor and may be withdrawn, in Franchisor's sole discretion, effective upon giving Franchisee 30 days' prior written notice of withdrawal.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, any waiver granted by Annex Brands can be withdrawn at their sole discretion. This withdrawal becomes effective after the franchisee receives 30 days' prior written notice. This means that Annex Brands has the right to change its mind regarding any previously waived obligations or restrictions.
This clause provides Annex Brands with significant flexibility in managing the franchise agreement. While a waiver might initially benefit a franchisee, Annex Brands retains the power to revoke it, potentially reinstating obligations or restrictions. The 30-day notice period offers the franchisee a limited window to adjust to the change, but the ultimate decision rests solely with Annex Brands.
This type of clause is not uncommon in franchise agreements, as it allows the franchisor to maintain control and adapt to changing circumstances. However, it also introduces an element of uncertainty for the franchisee, who must be prepared for the possibility of previously waived conditions being reinstated. Prospective franchisees should carefully consider this aspect and its potential impact on their business operations before entering into an agreement with Annex Brands.