What conditions must an Annex Brands franchisee meet during the original 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
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Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, a franchisee has the right to renew their franchise for an additional 20-year term, contingent upon meeting specific conditions outlined in their current franchise agreement. To be eligible for renewal, the franchisee must have substantially complied with all provisions of the franchise agreement and any other agreements with Annex Brands or its affiliates throughout the entire term of the franchise. This substantial compliance must extend up to the date of renewal.
Additionally, the franchisee must provide written notice of renewal to Annex Brands within a specific timeframe, no more than 12 months and no less than 6 months before 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 current specifications and standards for centers operating under the Annex Brands name by the end of the franchise term. If maintaining possession isn't possible, the franchisee needs to secure substitute premises approved by Annex Brands before the term expires.
Furthermore, the franchisee is required to execute the renewal agreements and releases as stipulated by Annex Brands. Finally, the franchisee must pay Annex Brands an $8,500 renewal fee to finalize the renewal process. Failing to meet any of these conditions could result in the expiration of the franchise term, potentially requiring the franchisee to cease operations unless the deficiencies are curable and subsequently cured.