What action must the franchisee and their owners take to receive a refund from Annex Brands after a franchise termination?

According to Annex Brands' 2025 Franchise Disclosure Document, both the franchisee and their owners must execute general releases in a form satisfactory to Annex Brands to receive a potential refund of the initial franchise fee after termination. This requirement applies in situations where Annex Brands terminates the franchise agreement before the franchisee begins initial training, or if the franchisee decides not to continue as a franchisee before starting initial training, and Annex Brands approves the termination and determines that a refund is due.

However, the refund is not guaranteed and is subject to deductions. Annex Brands may deduct $10,000 to cover the costs of services provided up to that point, including site evaluation and selection, center layout, travel and living expenses, compensation to employees and agents, legal fees, and other pre-opening supervision and advice. Additionally, any actual out-of-pocket expenses, including broker referral fees, will also be deducted from the initial franchise fee before a refund is issued.

It's important to note that if Annex Brands terminates the franchise after the franchisee begins initial training, no refund of the initial franchise fee will be provided. Similarly, if the franchisee decides to purchase an existing business instead of opening a new one, no refund will be given, regardless of whether Annex Brands terminates the franchise. The execution of general releases by the franchisee and their owners is a prerequisite for receiving any refund, but it does not guarantee the full amount of the initial franchise fee will be returned.