What action does Annex Brands take if a franchisee misuses a Mark?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee fails to initiate immediately or completely such alterations and/or removals within such time as Franchisor deems appropriate, Franchisee agrees that Franchisor or its representative(s) may enter the former Center and adjacent areas without prior notice and forcibly, if necessary, make such alterations and/or removals, at Franchisee's sole risk and expense, without responsibility for any actual or consequential damages to the property of Franchisee or otherwise, and without liability for trespass or other tort or criminal act.
Franchisee expressly acknowledges that its failure to make such alterations will cause irreparable injury to Franchisor, and Franchisee consents to entry, at Franchisee's expense, of an ex parte order by any arbitrator or court of competent jurisdiction authorizing Franchisor or its representative(s) to take such action, if Franchisor seeks such an order:
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- Franchisee will promptly take such action as may be required to cancel all fictitious or assumed name or equivalent registrations relating to his, her or their use of any Mark, and if Franchisee fails to do so, Franchisee authorizes Franchisor and any officer of Franchisor, to cancel at Franchisee's expense, all such fictitious or assumed name or
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 FDD, Annex Brands outlines specific actions it may take if a franchisee fails to properly use their Marks. If a franchisee does not immediately make required alterations or removals of misused Marks within a timeframe that Annex Brands deems appropriate, Annex Brands, or its representatives, can enter the former center and make those alterations or removals. This can be done without prior notice and forcibly, if necessary, at the franchisee's sole risk and expense. Annex Brands will not be held responsible for any damages to the franchisee's property or liable for trespass or any other tort or criminal act.
Annex Brands emphasizes that a franchisee's failure to make the required alterations will cause irreparable injury to Annex Brands. The franchisee consents to an ex parte order by any arbitrator or court that authorizes Annex Brands to take such action at the franchisee's expense if Annex Brands seeks such an order.
Additionally, the franchisee must promptly cancel all fictitious or assumed name registrations related to the misuse of the Mark. If the franchisee fails to do so, they authorize Annex Brands to cancel these registrations at the franchisee's expense. The franchisee irrevocably appoints Annex Brands as their attorney-in-fact to carry out this cancellation. This ensures that Annex Brands can quickly rectify any misuse of its Marks to protect its brand identity and goodwill.