What was the basis for Siew May Seow's claim of conversion against Annex Brands?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
On June 30, 2023, our franchisee, Siew May Seow ("Plaintiff"), filed an action in San Diego Superior Court naming us as Defendant, and alleging claims for breach of contract, breach of the implied covenant of good faith and fair dealing, false promise, and restitution. We received notice of the action on July 6, 2023. On July 27, 2023, Plaintiff filed an amended complaint to add a claim for conversion based on the same facts alleged in the original
complaint. In January 2023, Plaintiff had signed a franchise agreement granting her the right and obligation to open and operate a Postal Annex+ Center, and paid us an initial franchise fee of $29,950. Plaintiff asserts that she was unable to secure financing, and seeks a refund of the initial franchise fee, punitive damages, attorney fees and costs, and prejudgment interest. We filed a motion to compel arbitration, since the franchise agreement contains an arbitration provision. On April 5, 2024, the Court granted our motion and stayed Plaintiff's action. On May 29, 2024, Plaintiff filed a Demand for Arbitration (AAA, San Diego, California, Case No. 01-24-0005-7170). As of the date of this disclosure document, an arbitration hearing was scheduled to occur on March 19, 2025. We deny that Plaintiff is entitled to any relief, and we intend to defend against Plaintiffs' claims on their merits.
Source: Item 3 — Litigation (FDD pages 16–17)
What This Means (2025 FDD)
According to the 2025 FDD, Siew May Seow, an Annex Brands franchisee, filed an amended complaint against Annex Brands that included a claim for conversion. This claim was based on the same facts alleged in the original complaint. The original complaint was filed after Ms. Seow signed a franchise agreement in January 2023, granting her the right to open and operate a Postal Annex+ Center, and after she paid an initial franchise fee of $29,950.
Ms. Seow asserts that she was unable to secure financing and is seeking a refund of the initial franchise fee, punitive damages, attorney fees and costs, and prejudgment interest. Annex Brands has denied that Ms. Seow is entitled to any relief and intends to defend against her claims.
Annex Brands filed a motion to compel arbitration, as the franchise agreement contains an arbitration provision. The Court granted Annex Brands' motion and stayed Ms. Seow's action. Ms. Seow then filed a Demand for Arbitration, and an arbitration hearing was scheduled for March 19, 2025.