Who is authorized to release information about the franchisee to Annex Brands during the background investigation?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| I/we, Brands, Inc. ("Franchisor"), in its sole discretion and as it deems necessary, to investigate Franchisee's background. Franchisee understands that Franchisor may use an outside firm(s) to assist it in checking such information, and Franchisee specifically authorizes such an investigation by information services and outside entities of the Franchisor's choice. Franchisee understands that Franchisee may withhold permission and that in such a case, no investigation will be done, however, the execution of the Franchise Agreement by Franchisor may not be processed. | ("Franchisee"), hereby authorize Annex |
|---|---|
| Franchisee hereby authorizes a representative of the Franchisor bearing this release to obtain any | |
| information from credit reporting agencies, employers, individuals, schools, residences or criminal | |
| justice agencies relating to Franchisee's activities, in Franchisor's sole discretion and as Franchisor | |
| deems necessary. This information may include, but is not limited to, academic, achievement, | |
| arrest, attendance, conviction, credit, disciplinary, performance, personal history and residential | |
| records. Franchisee hereby directs you to release such information on request of the bearer. | |
| Franchisee hereby releases and holds harmless any individual, including but not limited to record | |
| custodians, from any and all liability, whether from negligence or violation or any other applicable | |
| legal standard that may potentially result from the release and/or use of such information. |
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the franchisee authorizes a representative of Annex Brands, bearing a release, to obtain information from various sources during a background investigation. These sources include credit reporting agencies, employers, individuals, schools, residences, and criminal justice agencies. This authorization allows Annex Brands to access records related to the franchisee's activities, such as academic achievements, arrest records, credit history, and personal history.
This authorization is at Annex Brands' sole discretion and deemed necessary for the investigation. The franchisee directs these entities to release information upon the request of the bearer of the release. The franchisee also releases and holds harmless any individual or record custodian from any liability resulting from the release or use of this information, whether due to negligence or any other legal standard.
In practical terms, this means that as a prospective Annex Brands franchisee, you are giving Annex Brands broad permission to investigate your background. You are also waiving your right to sue anyone who provides information to Annex Brands as part of this investigation. Franchisees can withhold permission for the background check, but Annex Brands may not process the Franchise Agreement in such a case. This is a common practice in franchising, as franchisors want to ensure that franchisees meet certain standards of character and financial responsibility. However, the scope of the authorization and the waiver of liability are important considerations for any potential franchisee.