What are the consequences for an Annex Brands franchisee who fails to provide access or reimbursement for maintenance?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee does not maintain the condition and appearance of the Center as is required by this Agreement, Franchisee will give Franchisor access to the Center on not less than 3 days' prior written notice from Franchisor, so that Franchisor may: 1) arrange for the necessary cleaning, repair, remodeling, upgrading, painting or decorating; and 2) replace the necessary leasehold improvements, furnishings, fixtures, equipment, displays, signs, or graphics. Franchisee must pay the entire cost thereof within 10 days of receipt of an invoice from Franchisor for the services or purchases. Franchisee's failure to give Franchisor access to the Center, or to reimburse Franchisor in accordance with this Subsection 9.A, is an act subject to the default and enforcement provisions of this Agreement.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees are responsible for maintaining the condition and appearance of their Center to meet the brand's standards. This includes regular cleaning, repairs, remodeling, and replacement of worn-out items. The Center must have new flooring and interior repainting at least every 60 months, with specific cleaning requirements for tile and carpet flooring.
If a franchisee fails to maintain the Center as required, Annex Brands can demand access to the Center with only 3 days' prior written notice. Annex Brands may then arrange for the necessary cleaning, repairs, remodeling, upgrading, painting, or decorating, as well as replace any necessary leasehold improvements, furnishings, fixtures, equipment, displays, signs, or graphics. The franchisee is responsible for paying the entire cost within 10 days of receiving an invoice from Annex Brands for these services or purchases.
The consequences for failing to provide access or reimbursement are significant. According to the FDD, such failure is considered a default of the Franchise Agreement, making the franchisee subject to the agreement's default and enforcement provisions. This ultimately puts the franchisee at risk of potential termination of their franchise agreement with Annex Brands.