What costs is the Annex Brands franchisee responsible for when the franchisor arranges for Center upgrades?
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 the 2025 Annex Brands Franchise Disclosure Document, franchisees are responsible for the costs associated with maintaining and upgrading their Center. Annex Brands requires franchisees to maintain the Center's condition and appearance to align with the brand's image. This includes regular cleaning, repairs, remodeling, and replacing obsolete fixtures. Specifically, flooring must be new, and the interior repainted every 60 months. Tile flooring needs daily cleaning and semi-annual polishing, while carpet requires daily cleaning and semi-annual dry cleaning.
If a franchisee fails to maintain the Center's condition as required, Annex Brands has the right to access the Center (with 3 days' written notice) to arrange the necessary work. The franchisee is then obligated to pay the entire cost within 10 days of receiving an invoice from Annex Brands. This covers cleaning, repairs, remodeling, upgrades, painting, decorating, and replacements of leasehold improvements, furnishings, fixtures, equipment, displays, signs, or graphics.
Failure to provide access or reimburse Annex Brands for these expenses constitutes a breach of the franchise agreement, potentially leading to default and enforcement actions. This arrangement ensures that all Annex Brands locations maintain a consistent standard, but it also places the financial burden of these upgrades and maintenance on the franchisee, even when Annex Brands manages the process.