What costs is the Annex Brands franchisee responsible for when the franchisor performs maintenance?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
THE CENTER
A. CONDITION AND APPEARANCE OF THE CENTER. Franchisee agrees to maintain the condition and appearance of the Center consistent with the System and required uniform image of its franchised businesses as a modern, clean, attractive and efficiently operated Center, which offers high quality products to the public based on friendly, creative and efficient service. Franchisee agrees to perform or cause to be performed at Franchisee's expense whatever maintenance of the Center is required to maintain such condition, appearance, and efficient operation, including: continuous and thorough cleaning; periodic decoration and repair or remodeling, as necessary, of the interior and exterior of the Center; and replacement of worn-out or obsolete leasehold improvements, furnishings, fixtures, equipment, displays, signs, and graphics with approved leasehold improvements, furnishings, fixtures, equipment, displays, signs, and graphics. The Center must have new flooring, and the interior must be repainted to Franchisor's specifications at least once every 60 months. Any tile flooring must be cleaned daily and polished at least semi-annually, and any carpet flooring must be cleaned daily and dry-cleaned at least semi-annually, to Franchisor's specifications as necessary to maintain a clean appearance.
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.
No replacement of leasehold improvements, furnishings, equipment, displays, signs, or graphics will be made, nor will any material alteration to the Center as originally developed or approved by Franchisor be made, without Franchisor's prior written consent.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 Annex Brands Franchise Disclosure Document, the franchisee is responsible for maintaining the condition and appearance of the Center. This includes regular cleaning, periodic decoration, repairs, or remodeling, and replacing any worn-out or obsolete items like leasehold improvements, furnishings, fixtures, equipment, displays, signs, and graphics. The Center's flooring must be new, and the interior must be repainted to Annex Brands's specifications at least once every 60 months. Tile flooring must be cleaned daily and polished at least semi-annually, while carpet flooring must be cleaned daily and dry-cleaned at least semi-annually.
If the franchisee fails to maintain the Center's condition and appearance as required, Annex Brands can arrange for the necessary cleaning, repair, remodeling, upgrading, painting, or decorating, and replace necessary items after providing at least 3 days' prior written notice. The franchisee is then responsible for paying the entire cost of these services and purchases within 10 days of receiving an invoice from Annex Brands. Failure to provide access or reimburse Annex Brands can result in default and enforcement actions under the Franchise Agreement.
In the event that Annex Brands cures any default by the franchisee under the lease, the franchisee is responsible for immediately paying Annex Brands the total amount of all costs and payments incurred by Annex Brands in curing the default. This means that franchisees must be diligent in maintaining their premises and fulfilling lease obligations to avoid incurring additional costs and potential intervention by Annex Brands.