Does Annex Brands consider failure to pay any other indebtedness to Franchisor or its affiliates as a breach?

According to Annex Brands' 2025 Franchise Disclosure Document, failure to pay any indebtedness to Annex Brands or its affiliates constitutes a breach of the franchise agreement. Specifically, Annex Brands may terminate the franchise agreement if the franchisee fails or refuses to make payments of any amounts due to Annex Brands or its affiliates for various fees, expenses, or other indebtedness.

This includes royalty fees, marketing fees, national convention participation deposits, technology services fees, insurance premiums, payments for equipment leases or rentals, supply purchases from Annex Brands and its affiliates, interest, late fees, or any other form of debt owed to Annex Brands or its affiliates. If the franchisee fails to correct such non-payment within 10 days after receiving written notice of default, Annex Brands has grounds for termination.

This provision is fairly standard in franchising, as timely payment of fees and other financial obligations is crucial for the franchisor's revenue and the overall health of the franchise system. The relatively short cure period of 10 days underscores the importance Annex Brands places on franchisees meeting their financial obligations promptly. Prospective franchisees should be aware of these requirements and ensure they have sufficient financial resources to meet all payment obligations to Annex Brands and its affiliates.