What actions related to Annex Brands trademarks could lead to immediate franchise termination?
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)
Based on the 2025 FDD, Annex Brands outlines specific post-termination obligations regarding the use of its trademarks. After the franchise agreement expires, terminates, or is not renewed, the franchisee must promptly remove and alter any materials that display Annex Brands' trademarks. This includes physical signs at the Center and online references such as website content or social media profiles. Failure to comply with these requirements allows Annex Brands to enter the former Center and make these alterations or removals themselves, at the franchisee's expense and risk.
Specifically, the franchisee must cancel any assumed name registrations related to the use of Annex Brands' marks. If the franchisee fails to do so, Annex Brands is authorized to cancel these registrations on the franchisee's behalf, with the franchisee bearing the costs. Additionally, Annex Brands retains sole ownership of all telephone and fax numbers, directory listings, email addresses, domain names, social media platforms, and other electronic identities associated with the marks or the Center after the franchise relationship ends.
These stipulations are fairly standard in franchising, as franchisors need to protect their brand identity and prevent former franchisees from trading on their goodwill. Prospective Annex Brands franchisees should understand that they must completely cease using the Annex Brands' identity upon termination and take proactive steps to ensure a clean break. Failing to do so not only gives Annex Brands the right to take corrective action but also exposes the former franchisee to potential legal repercussions for trademark infringement.