What documents might an Annex Brands franchisee need to execute to participate in system-wide programs like the international ocean program?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Franchisor may require Franchisee to participate in any system-wide transportation programs, which may include an international ocean program, in which Franchisor internally books international ocean shipments with the shipping lines, provides appropriate documentation, collects payments from customers, pays shipping lines, and completes transactions with Centers. Franchisee agrees to execute the then-current documents that may be necessary to participate in these system-wide programs, such as Attachment 7 for the international ocean program. Franchisor may charge a fee to the extent that it supplies or administers any such program.
- K. CO-BRANDING. Notwithstanding other provisions in this Agreement, Franchisor reserves the right to establish relationships, partnerships, joint ventures, and other strategic alliances (collectively, "programs") with suppliers, retailers, service providers, and other franchise or distribution companies (collectively, "companies"), in which the products or services of those companies will be co-marketed with Franchisor's products and services, which may entail the promotion of the "brands" of those companies' products or services and the license of those companies' marks. If Franchisor establishes any programs of this type, Franchisee must participate in accordance with policies and requirements that Franchisor establishes, including the execution of separate licensing and distribution agreements in forms that Franchisor specifies, and the payment of reasonable fees related to the programs that may be in addition to royalty fees and marketing fees.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 FDD, Annex Brands may require franchisees to participate in system-wide transportation programs, including an international ocean program. To participate, a franchisee must execute the documents that Annex Brands deems necessary for these programs. For the international ocean program specifically, Attachment 7 may be required. Annex Brands may also charge a fee for administering these programs.
In addition to system-wide transportation programs, Annex Brands reserves the right to establish co-branding relationships with other companies. If Annex Brands establishes such programs, franchisees must participate according to the franchisor's policies, which may include executing separate licensing and distribution agreements. Franchisees may also be required to pay reasonable fees related to these co-branding programs, which could be in addition to regular royalty and marketing fees.
It is important for prospective franchisees to understand that participation in these programs is not optional if Annex Brands decides to implement them. The franchisee will need to budget for any additional fees and ensure they are willing to enter into additional agreements as required by Annex Brands. Attachment 7 is the International Ocean Program Sales Agency Agreement.