What equipment must an Annex Brands Center use?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
AND SIGNS. Franchisee agrees to use in the development of the Center and operation of the Center only those fixtures, furnishings,
equipment and signs that Franchisor has approved for Centers as meeting its specifications and standards for quality, design, appearance, function and performance. Franchisee further agrees to place or display at the Center (interior and exterior) only such signs, emblems, lettering, graphics, logos and display materials that Franchisor periodically approves in writing. Franchisee will purchase or lease approved brands, types or models of fixtures, furnishings, equipment, and interior and exterior signage only from suppliers approved or designated by Franchisor (which may include solely Franchisor and/or its affiliates). If Franchisee proposes to purchase, lease or otherwise use any fixture, furnishing, equipment, or interior or exterior signage which is not then approved by Franchisor, Franchisee will first notify Franchisor in writing, and will submit to Franchisor upon its request information regarding the supplier and sufficient specifications, photographs, drawings and/or other information or samples for a determination whether such fixture, furnishing, equipment, storefront and/or sign complies with Franchisor's specifications and standards. Whenever Franchisee uses 2 or more Point-of-Sale ("POS") computers, the computers will be networked so that all sales and other data can be combined in reports that are sent to Franchisor electronically or otherwise, as specified by Franchisor.
CENTER OPENING. Franchisee agrees not to open the Center for business until: 1) all of Franchisee's obligations under Subsections 3.C and 3.D of this Agreement have been fulfilled; 2) Franchisor determines that the Center has been constructed, decorated, furnished, equipped and stocked with materials and supplied in accordance with approved plans and specifications; 3) pre-opening training of Franchisee and personnel of the Center has been completed to Franchisor's satisfaction; 4) the initial franchise fee and all other amounts then due to Franchisor and/or its affiliates have been paid; and 5) Franchisor has been furnished with copies of all insurance policies required in this Agreement, or such other evidence of insurance coverage and payment of premiums as Franchisor requests. Franchisee agrees to comply with these conditions and to open the Center for business within 365 days after execution of this Agreement. Franchisee further agrees to open the Center for business under this Agreement within 5 days after Franchisor gives written notice to Franchisee stating that the Center is ready for opening. If Franchisee fails to open the Center within 365 days after execution of this Agreement, except in the event of delays caused by Franchisor and/or delays caused by the Premises Owner (as defined in Subsection 3.B of this Agreement), Franchisor may terminate the Franchise at any time thereafter (see Subsection 8.A of this Agreement).
4. TRAINING, GUIDANCE AND MANUALS
A. TRAINING. Franchisor will provide to Franchisee and/or Franchisee's personnel (not to total more than 4 persons) initial training in the operation of the Center.
Initial training will take place only after this Agreement is fully executed, and will generally be a combination of hands-on experience in Franchisor's training Center and classroom training at Franchisor's offices in San Diego, California. Initial training generally will last 8 classroom days for a standard, flex or express Center, with up to 1 additional 6-hour day for a flex Center, provided, however, that Franchisor may, in its sole discretion, reduce the number of days of classroom training, taking into account factors such as attendees' prior experience with the subject matter, the number of attendees, scheduling, etc. Franchisor may, but is not required to, provide an online training program before Franchisee and/or Franchisee's personnel attend initial training that may reduce the number of classroom days for initial training. Franchisor, may but is not required to, provide additional pre-training or post-training sessions, including teleconferences, online web-based training and live webcast sessions, that Franchisee must complete within the timeframe specified by Franchisor in its sole discretion. Franchisee must pay any then-current license and administrative fees associated with pre-training and post-training
requirements (such as the current one-time 12-month license and administrative fee of $330 for an online financial training portal). Initial training will cover general and local marketing, advertising and promotion, marketing programs, marketing resources and tools, sales training, general business instruction, and the practical, administrative and financial aspects of each revenue center in a typical Center. Franchisee and/or Franchisee's designated personnel must complete initial training to the satisfaction of Franchisor.
Franchisee must obtain and install all computer hardware, and all software programs and licenses, as specified by Franchisor under Section 9 of this Agreement, and must establish Internet access as specified by Franchisor under Section 9 of this Agreement, before or at initial training. Franchisee acknowledges that this is necessary to prepare for initial training. Franchisor will provide Franchisee assistance to prepare for initial training, which may include providing Franchisee with pre-training materials (including computer materials) and a workbook before training.
Subject to the availability of Franchisor's personnel, Franchisor will provide on-site initial training at Franchisee's location for up to 4 days for new franchisees and 1 day for transfers or existing franchisees at no charge to Franchisee.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 FDD, Annex Brands franchisees must use fixtures, furnishings, equipment, and signs that meet the franchisor's standards for quality, design, appearance, function, and performance. These items must be purchased or leased from suppliers approved or designated by Annex Brands, which may include Annex Brands itself or its affiliates. If a franchisee wants to use a non-approved item, they must first get written approval from Annex Brands, providing specifications and other relevant information.
Annex Brands also requires franchisees to obtain and maintain specific computer hardware, software, licenses, and related accessories. These include dedicated telephone, fax, and power lines, as well as merchant card processing equipment. Whenever a franchisee uses two or more Point-of-Sale (POS) computers, these computers must be networked to consolidate sales data for reporting to Annex Brands.
Annex Brands emphasizes the importance of a uniform image across all Centers, so franchisees must offer products and services and use equipment brands and models that Annex Brands deems appropriate. The franchisor considers factors like quality, value, customer recognition, advertising support, and availability when determining approved equipment. Franchisees cannot make material alterations to the Center or replace leasehold improvements, furnishings, equipment, displays, signs, or graphics without prior written consent from Annex Brands. Any unauthorized changes must be rectified at the franchisee's expense.
These requirements ensure that all Annex Brands Centers maintain a consistent brand image and operational standard, which is crucial for customer perception and the overall success of the franchise system. While franchisees have some autonomy in pricing, they must adhere to Annex Brands's guidelines regarding the types and brands of equipment used in their Centers. This helps maintain quality control and uniformity across the franchise network.