factual

After the conclusion of an Annex Brands franchise, for how long is a franchisee prohibited from diverting business from any Retail Center or Commercial Logistics Center?

Annex_Brands Franchise · 2025 FDD

Answer from 2025 FDD Document

anchise's term.

  • b. Upon the Conclusion of the Franchise under the Franchise Agreement, and in accordance with the time period and geographic restrictions set forth below, Covenantor will not directly or indirectly (such as through corporations or other entities controlled by Covenantor or by, through or in conjunction with, any other individual person or person, including but not limited to Covenantor's spouse if any, relatives, employees or business affiliates):
    • i. divert or attempt to divert any business or customer of any Retail Center or Commercial Logistics Center to any competitor, or do anything injurious or prejudicial to the goodwill associated with ABI's Marks or System for a two

  • (2) year period following the Conclusion of the Franchise under the Franchise Agreement and without geographic restriction;
  • ii. own, maintain, engage in, be associated with, be employed by, advise, assist, invest in, be landlord to, franchise, make loans to, or have any interest in any business which is the same, competes, or is substantially similar to, Franchisee's Center or any Retail Center or Commercial Logistics Center, which is located within 5 miles of Franchisee's Center or any Retail Center or Commercial Logistics Center in operation or under construction as of the Conclusion of the Franchise under the Franchise Agreement (with such restriction limited to a two (2) year period following the Conclusion of the Franchise under the Franchise Agreement); and/or
  • iii. enter into any business relationship with any terminated (former) Corporate Account(s) of any Retail Center or Commercial Logistics Center for a one (1) year period following ABI's termination of any of its Corporate Accounts.
  • c.

Source: Item 22 — Contracts (FDD pages 109–110)

What This Means (2025 FDD)

According to Annex Brands's 2025 Franchise Disclosure Document, a franchisee is prohibited from diverting business or customers from any Retail Center or Commercial Logistics Center for a period of two years following the conclusion of the franchise agreement. This restriction applies regardless of geographic location. The "Conclusion" of the franchise includes its expiration, termination, non-renewal, or transfer.

This means that for two years after leaving the Annex Brands system, a former franchisee cannot actively try to take business away from existing Annex Brands locations. This restriction is in place to protect the brand's goodwill and customer base.

It is important to note that an alternative to this covenant exists if the former center is located in a state that disfavors the enforceability of post-term non-competition covenants against franchisees. In this case, the restriction is limited to six months and applies only to businesses selling packaging and shipping services at the former franchise location.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.