What conditions must an Annex Brands franchisee meet during the initial franchise term to be eligible for renewal?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
F FRANCHISE
- A. FRANCHISEE'S RIGHT TO RENEW. Franchisee will have the right to renew the Franchise for an additional 20-year term, subject to the terms and conditions in Franchisee's then-current franchise agreement. The following renewal terms and conditions apply under this Agreement:
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- Franchisee has, during the entire term of the Franchise granted under this Agreement, substantially complied with all of the provisions of this Agreement and all of the provisions of any other agreements between Franchisee and Franchisor or any of its affiliates, and has stayed in substantial compliance with this Agreement and such agreements up to the date of renewal;
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- Franchisee has given written notice of renewal to Franchisor as provided in Subsection 14.B of this Agreement;
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- Franchisee has maintained possession of the Center, and by the expiration of the term of the Franchise granted under this Agreement, has brought the Center into full compliance with the specifications and standards then applicable for Centers operating under the specified brand; or Franchisee has secured substitute premises approved by Franchisor prior to the expiration of the term of the Franchise granted under this Agreement, if Franchisee is unable to maintain possession of the Center, or if in Franchisor's reasonable business judgment the Center should be relocated;
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- Franchisee has executed the renewal agreements and releases as provided in Subsection 14.C of this Agreement; and
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- Franchisee has paid Franchisor a $8,500 renewal fee.
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- B. NOTICES BY FRANCHISEE AND FRANCHISOR. If Franchisee desires to renew the Franchise on the 20-year anniversary of the execution date of this Agreement, Franchisee must give Franchisor written notice of his, her or their desire to renew the Franchise not more than 12 months and not less than 6 months prior to the 20-year anniversary of the execution date of this Agreement. Within 90 days after its receipt of such timely given notice, Franchisor will give Franchisee written notice of: 1) reasons which could cause Franchisor not to renew, including any deficiencies which require correction and a schedule for correction of the deficiencies by Franchisee; and 2) Franchisor's then-current requirements relating to the image, appearance, decoration, furnishing, equipping and stocking of new Centers operating under the designated brand.
If Franchisor believes there are grounds for non-renewal, Franchisor will give Franchisee written notice of its decision not to permit renewal of the Franchise at least 90 days prior to the 20-year anniversary of the execution date of this Agreement, which notice will specify the reasons for the decision not to permit renewal. If Franchisor gives such notice, and if the reasons given for
the decision are not curable or Franchisee fails to cure any reasons given that are curable, the term of the Franchise granted under this Agreement will expire on the 20-year anniversary of the execution date of this Agreement.
- C. RENEWAL AGREEMENT/RELEASES.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 FDD, an Annex Brands franchisee has the right to renew their franchise for an additional 20-year term, provided they meet certain conditions. These conditions include substantial compliance with all provisions of the Franchise Agreement and any other agreements with Annex Brands or its affiliates throughout the entire term, and maintaining this compliance up to the renewal date.
To be eligible for renewal, the Annex Brands franchisee must provide written notice of renewal to Annex Brands within a specific timeframe: not more than 12 months and not less than 6 months prior to the 20-year anniversary of the agreement's execution date. The franchisee must also maintain possession of the Center and ensure it fully complies with the then-current specifications and standards for Centers operating under the brand by the expiration of the initial term. If maintaining possession isn't possible, the franchisee needs to secure substitute premises approved by Annex Brands before the term expires, especially if Annex Brands deems relocation necessary.
Finally, the Annex Brands franchisee must execute the renewal agreements and releases as required by Annex Brands and pay a renewal fee of $8,500. Failure to meet all these conditions by the 20-year anniversary of the agreement could result in the franchise term continuing only until Annex Brands elects to terminate it with 60 days' prior written notice. This ensures Annex Brands maintains standards and that franchisees are committed to the brand's continued success.