Who bears the expense of changes, replacements, or modifications required by Annex Brands that were not previously approved?

According to Annex Brands' 2025 Franchise Disclosure Document, the franchisee is responsible for the expenses associated with changes, replacements, or modifications not previously approved by Annex Brands. Specifically, Annex Brands retains the right to mandate rectifications to leasehold improvements, furnishings, equipment, displays, signs, or graphics at the franchisee's sole expense if such items were not initially approved.

This stipulation ensures that all Annex Brands locations maintain a consistent brand image and adhere to the franchisor's standards. It also means that franchisees must obtain prior written consent from Annex Brands before making any material alterations to their center. This requirement extends to the signs, logos, emblems, lettering, graphics, and display materials used within the center, all of which must be approved or designated in writing by Annex Brands.

The franchisee bears the financial risk of non-compliance. If a franchisee makes unauthorized changes, they will be required to rectify them at their own cost. This could involve removing or replacing unapproved elements, potentially leading to unexpected expenses and disruptions to the business. Therefore, franchisees must maintain open communication with Annex Brands and seek approval for any proposed changes to avoid these costs.

This requirement is fairly standard in franchising, as franchisors need to protect their brand standards. However, franchisees should carefully document all approvals received from Annex Brands to avoid potential disputes over what was previously authorized. Franchisees should also clarify the process for obtaining approvals and the turnaround time to ensure they can make necessary changes efficiently.