Does Annex Brands' approval of a proposed site constitute a warranty of its suitability?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE ACKNOWLEDGES AND AGREES THAT FRANCHISOR'S APPROVAL OF A PROPOSED SITE AND ANY INFORMATION IMPARTED TO FRANCHISEE REGARDING THE PROPOSED SITE WILL NOT CONSTITUTE A WARRANTY OR REPRESENTATION OF ANY KIND, EXPRESSED OR IMPLIED, AS TO THE SUITABILITY OF THE PROPOSED SITE FOR THE CENTER, OR FOR ANY OTHER PURPOSE, AND FRANCHISOR'S APPROVAL OF SUCH SITE SIGNIFIES MERELY THAT FRANCHISOR IS WILLING TO GRANT A FRANCHISE FOR THE PROPOSED SITE. FRANCHISEE FURTHER ACKNOWLEDGES AND AGREES THAT HIS, HER OR THEIR ACCEPTANCE OF A FRANCHISE FOR THE PROPOSED SITE WILL BE BASED SOLELY ON HIS, HER OR THEIR OWN INDEPENDENT INVESTIGATION OF THE SUITABILITY OF SUCH PROPOSED SITE.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the franchisor's approval of a proposed site does not constitute a warranty or representation of any kind regarding the site's suitability. This means that while Annex Brands may approve a location, this approval doesn't guarantee that the site is ideal for the business or any other purpose. The approval merely indicates that Annex Brands is willing to grant a franchise for that specific location.
Annex Brands emphasizes that it is the franchisee's responsibility to conduct their own independent investigation to determine if the proposed site is suitable for their business. This includes assessing factors like local market conditions, accessibility, visibility, and other elements that could impact the success of the Annex Brands center. Franchisees should not rely solely on the franchisor's approval but should instead perform thorough due diligence.
This provision protects Annex Brands from potential liabilities related to site selection. By making it clear that site approval is not a warranty, Annex Brands shifts the responsibility for assessing site suitability to the franchisee. Therefore, prospective Annex Brands franchisees must recognize the importance of conducting thorough research and possibly seeking expert advice to evaluate potential locations before committing to a franchise agreement.