Is compliance with the covenants a condition precedent to engagement or employment with Annex Brands?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Covenants As Independent and As Conditions Precedent to Employment or Engagement.
Your covenants in Section 1 are independent of any other terms of this Agreement, and are conditions precedent to engagement or employment.
Any claim or cause of action against us or Franchisor, whether predicated on this Agreement or otherwise, will not be a defense to the enforcement by us or Franchisor of the covenants in Section 1.
Source: Item 23 — Receipts (FDD pages 110–299)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the covenants outlined in Section 1 of the agreement are conditions precedent to engagement or employment. This means that an individual's adherence to these covenants is a prerequisite for starting or continuing their engagement or employment with an Annex Brands franchisee. These covenants are independent of other terms in the agreement, meaning that any disputes or claims against Annex Brands or the Franchisor do not excuse the individual from complying with the covenants.
These covenants primarily relate to non-disclosure and non-competition. During the term of engagement or employment, individuals are prohibited from divulging trade secrets or confidential information and from diverting business or customers to competitors. After termination of engagement or employment, the individual is restricted from engaging in any similar business that offers similar products or services within the protected area of the franchisee's business or any other franchisee's business operating at the time of termination for a period of one year.
Annex Brands or the Franchisor retain the right to reduce the scope of any term within the agreement without the individual's consent, effective immediately upon written notice. This modification is fully enforceable, and the individual is expected to comply promptly. Furthermore, Annex Brands has the right to seek injunctive relief, with a $1,000 bond, to prevent any actual or threatened violation of these covenants, highlighting the importance Annex Brands places on protecting its interests and confidential information.