factual

What experience does Annex Brands consider when approving a substitute contractor?

Annex_Brands Franchise · 2025 FDD

Answer from 2025 FDD Document

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You must use a contractor and an architect that we designate in the build-out of your retail center. The contractor will coordinate with the architect, design and plan the premises, interact with local officials for appropriate building approvals, and complete the build-out of the premises (including electrical, painting, equipment package installation for your retail center, and also possibly including interior and exterior signage installation). The architect will design the premises of your retail center according to our specifications and prepare plans that meet local requirements. You may use a substitute licensed contractor if we approve the licensed contractor in advance. It is not our regular practice to approve substitute contractors. The factors we consider to approve or disapprove a substitute contractor are licensing experience, commercial tenant improvement experience, pricing, reputation and scheduling availability. If we approve and you use a substitute contractor, you must pay us a $2,500 construction consultation fee before construction begins. You may not use a substitute architec

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 39–43)

What This Means (2025 FDD)

According to Annex Brands's 2025 Franchise Disclosure Document, if a franchisee wants to use a contractor other than the one designated by Annex Brands for the build-out of their retail center, Annex Brands will consider several factors before granting approval. These factors include the contractor's licensing experience, commercial tenant improvement experience, pricing, reputation, and scheduling availability.

It is important to note that Annex Brands states that it is not their regular practice to approve substitute contractors. This suggests that franchisees should anticipate using the contractor initially designated by Annex Brands. If a franchisee's substitute contractor is approved, the franchisee must pay Annex Brands a $2,500 construction consultation fee before construction begins.

The FDD also states that franchisees may not use a substitute architect. This restriction, combined with the difficulty of getting a substitute contractor approved, highlights the importance of being satisfied with Annex Brands's designated contractor and architect for the retail center build-out.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.