What is Attachment 5 to the Annex Brands Franchise Agreement?

According to the 2025 Annex Brands Franchise Disclosure Document, Attachment 5 to the franchise agreement is the Collateral Assignment of Lease. This attachment is subject to negotiation with the lessor.

The Collateral Assignment of Lease means that the franchisee (as the assignor) assigns their rights, title, and interest in the lease to Annex Brands (the assignee) as collateral. This gives Annex Brands certain rights regarding the lease if the franchisee defaults on the Franchise Agreement.

Specifically, if the franchisee defaults under the lease, the Franchise Agreement, or any document securing the Franchise Agreement, or upon expiration, termination, or non-renewal of the franchise, Annex Brands has the right to take possession of the premises. The franchisee will have no further rights to the lease and will be liable for past due rents that Annex Brands has to pay to the lessor to take over the assignment. The franchisee must also get Annex Brands' written consent before any surrender, termination, amendment, or modification of the lease. The franchisee must also exercise all options to extend or renew the lease no less than 30 days before the option expires, unless Annex Brands agrees otherwise in writing. If the franchisee fails to do so, Annex Brands is appointed as the attorney-in-fact to exercise such extension or renewal options.