What factors does Annex Brands consider when determining approved brands and models of equipment?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
In determining approved brands and models of equipment, Franchisor may consider standards of quality, value, customer recognition and acceptance, advertising support and availability, and such other standards as are periodically determined by Franchisor to be relevant. Certain trade dress fixtures, equipment, supplies, other merchandise and services may be required to be purchased directly from Franchisor and/or its affiliates, or may be permitted to be purchased from other suppliers provided Franchisor is held harmless by Franchisee regarding any products liability cause of action. On items or services sold by Franchisor and/or its affiliates, Franchisor anticipates a reasonable profit to cover overhead expenses.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, when determining approved brands and models of equipment, Annex Brands may consider several factors. These include standards of quality, value, customer recognition and acceptance, advertising support, and availability. Additionally, Annex Brands may consider other standards that it periodically determines to be relevant.
This means that as a franchisee, you are not entirely free to choose your own equipment. Annex Brands retains the right to ensure that all equipment used in the franchise meets their standards for things like quality and brand recognition. This is fairly common in franchising, as franchisors want to maintain a consistent brand image and customer experience across all locations.
Annex Brands also specifies that certain trade dress fixtures, equipment, supplies, other merchandise, and services may be required to be purchased directly from Annex Brands and/or its affiliates, or may be permitted to be purchased from other suppliers provided Annex Brands is held harmless by Franchisee regarding any products liability cause of action. This means that franchisees may be limited in their choice of suppliers and may be required to purchase certain items directly from Annex Brands, which could impact costs and profit margins. Franchisees are responsible for ensuring Annex Brands is protected from any product liability issues if they choose to use alternative suppliers. On items or services sold by Annex Brands and/or its affiliates, Annex Brands anticipates a reasonable profit to cover overhead expenses.