Can Annex Brands automatically enroll a franchisee in advertising after the initial New Center/New Owner Marketing Program deposit is exhausted?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may, in its sole discretion and with 30 days' advance notice to Franchisee in its Manuals, in writing or otherwise, after the deposit is exhausted, automatically enroll Franchisee in advertising in the mediums noted above; however, Franchisee may opt out with 30 days' advance notice by following instructions provided in the Retail Marketing Manual for Standard, Flex and Express Retail Centers, in new Center/new owner marketing Program documents, in Manuals, or otherwise in writing. Franchisor will not charge a fee for this service. Franchisor will not
place any advertising outside Franchisee's Area of Dominant Influence ("ADI"), or use the deposit for any other purpose, without Franchisee's consent. An ADI is defined as the area covered by a particular advertising medium as recognized in the advertising industry. Franchisor generally will use all of the deposit, and will provide Franchisee with a written accounting of how the deposit was used. Franchisor will provide the accounting to Franchisee a reasonable time after the deposit is exhausted, or within about 150 days after Franchisee (i) opens the Center, (ii) assumes the operation of an existing Center by transfer, or (iii) converts an existing business to a Center.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, after a franchisee's initial New Center/New Owner Marketing Program deposit is exhausted, Annex Brands may automatically enroll the franchisee in advertising. This enrollment can occur in mediums such as Internet, print, and digital media, or direct mail. Annex Brands must provide 30 days' advance notice before automatically enrolling a franchisee in advertising.
However, the franchisee has the option to opt out of this automatic enrollment. To do so, they must provide 30 days' advance notice, following the instructions provided in the Retail Marketing Manual for Standard, Flex, and Express Retail Centers, in new Center/new owner marketing Program documents, in the Manuals, or otherwise in writing. Annex Brands will not charge a fee for this automatic enrollment service.
Annex Brands also specifies that advertising purchased with the initial deposit will not be placed outside the franchisee's Area of Dominant Influence (ADI) without the franchisee's consent. An ADI is defined as the area covered by a particular advertising medium as recognized in the advertising industry. Annex Brands will generally use the entire deposit and provide a written accounting of how the deposit was used within a reasonable time after it is exhausted, or within about 150 days after the center opens, is transferred, or converted.