What does the Annex Brands FDD state regarding my obligation to promote and develop the franchised business?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Covenants Not to Disclose; Covenants Not to Compete. You agree that certain methods of doing business and other elements comprising the System are distinctive and have been developed by Franchisor and us at great effort, skill, time and expense; that you will have regular and continuing access to valuable trade secrets, Confidential Information and valuable training regarding the System; and that you recognize your obligation to promote and develop our franchised business. You accordingly agree as follows:
- (a) Except as required in duties performed for us, you will never, either during or after the term or engagement or employment, either directly or indirectly, use, or disseminate or disclose to any person or entity, any trade secrets or Confidential Information, including but not limited to customer names, other customer information and business methods, of Franchisor or us, and will always seek to preserve the confidentiality of those trade secrets and Confidential Information.
- (b) During your engagement or employment, you will not, directly or indirectly, for yourself, or through, on behalf of, or in conjunction with any person or entity, divert or attempt to divert any business or customer of ours to any competitor or other person by direct or indirect inducement or otherwise, but this Section will not prevent you from referring customers in good faith to other businesses, including but not limited to competitors' businesses, that may be able to provide those customers with products or services not available from our business.
Source: Item 23 — Receipts (FDD pages 110–299)
What This Means (2025 FDD)
According to the 2025 Annex Brands Franchise Disclosure Document, as an employee or independent contractor, you acknowledge your obligation to promote and develop the franchised business. This obligation is tied to the understanding that you will have access to valuable trade secrets, confidential information, and training related to the Annex Brands system, which has been developed at significant effort and expense by the franchisor and its affiliates.
This means that during your engagement, you are expected to actively contribute to the growth and success of the Annex Brands franchise. This includes refraining from actions that could divert business or customers to competitors. However, you are allowed to make good faith referrals to other businesses, including competitors, if they can provide products or services that the Annex Brands location does not offer.
Furthermore, you are prohibited from disclosing or using any trade secrets or confidential information of Annex Brands, including customer lists and business methods, both during and after your term of employment or engagement, except as required by your duties. This underscores the importance of maintaining the confidentiality of proprietary information to protect the competitive advantage of the Annex Brands system.