Does Annex Brands consider the franchisee's aptitude when granting franchise rights?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
OF INFORMATION
| I/we, Brands, Inc. ("Franchisor"), in its sole discretion and as it deems necessary, to investigate Franchisee's background. Franchisee understands that Franchisor may use an outside firm(s) to assist it in checking such information, and Franchisee specifically authorizes such an investigation by information services and outside entities of the Franchisor's choice. Franchisee understands that Franchisee may withhold permission and that in such a case, no investigation will be done, however, the execution of the Franchise Agreement by Franchisor may not be processed. | ("Franchisee"), hereby authorize Annex |
|---|---|
| Franchisee hereby authorizes a representative of the Franchisor bearing this release to obtain any | |
| information from credit reporting agencies, employers, individuals, schools, residences or criminal | |
| justice agencies relating to Franchisee's activities, in Franchisor's sole discretion and as Franchisor | |
| deems necessary. This information may include, but is not limited to, academic, achievement, | |
| arrest, attendance, conviction, credit, disciplinary, performance, personal history and residential | |
| records. Franchisee hereby directs you to release such information on request of the bearer. |
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, Annex Brands does conduct background checks on prospective franchisees. Annex Brands is authorized to investigate a franchisee's background as it deems necessary.
This investigation may involve using outside firms to gather information. The franchisee's authorization allows Annex Brands to obtain information from various sources, including credit reporting agencies, employers, schools, residences, and criminal justice agencies.
The information gathered may include academic achievements, arrest records, attendance, convictions, credit history, disciplinary actions, performance reviews, personal history, and residential records. The franchisee can withhold permission for this investigation, but Annex Brands may choose not to proceed with the Franchise Agreement in such cases.
This process is typical in franchising, as franchisors want to ensure that franchisees meet certain standards and are likely to uphold the brand's reputation. Franchisees should be prepared to provide necessary information and documentation to facilitate this background check.