What is the deadline for an Annex Brands franchisee to notify Annex Brands of a claim to be eligible for indemnification in trademark litigation?

According to the 2025 FDD, an Annex Brands franchisee must notify Annex Brands of a trademark infringement or unfair competition claim within 30 days of learning about it to be eligible for indemnification. This indemnification applies only if the franchisee is using the trademarks in compliance with the franchise agreement, manuals, and other business materials provided by Annex Brands.

This requirement is important because it sets a strict deadline for franchisees to act if they face legal challenges related to trademark use. Failing to notify Annex Brands within the 30-day window could mean the franchisee loses the right to have Annex Brands defend or cover the costs of the litigation. This could potentially expose the franchisee to significant legal expenses.

The FDD also stipulates that Annex Brands retains control over any administrative proceedings or litigation involving the trademarks. Franchisees are required to promptly inform Annex Brands of any unauthorized use of the marks by others. However, Annex Brands does not have a mandatory obligation to take action upon receiving such notification; any action taken is at their sole discretion and expense.

In summary, while Annex Brands offers potential indemnification for trademark litigation, it is contingent on the franchisee's adherence to brand standards and a strict notification timeline. Franchisees should be vigilant in protecting the trademarks and promptly reporting any issues to Annex Brands to ensure they can benefit from this protection.