Does the Annex Brands franchise agreement allow for transfers of LLC interests?

According to Annex Brands' 2025 Franchise Disclosure Document, the franchise agreement addresses the transfer of LLC interests. Specifically, the agreement states that a "sale, gift or other transfer of capital stock, or of a partnership, LLC or other ownership interest, in Franchisee" is considered a transfer subject to certain restrictions.

Annex Brands requires prior written approval from the franchisor for any direct or indirect transfer of the franchise, agreement, center, or center assets. This includes transfers of capital stock, partnership interests, LLC interests, or other ownership interests in the franchisee. Any transfer without approval constitutes a default of the agreement and conveys no rights to the transferee.

To gain approval for a transfer of a controlling interest, the proposed transferee must meet Annex Brands' standards for franchisees and execute the then-current franchise agreement. Additionally, the franchisee must pay all outstanding fees and indebtedness to Annex Brands, and the lessor of the center must consent to the assignment or sublease. A transfer fee of 15% of the current non-discounted initial franchise fee is required, although a 25% discount applies for those who qualify for the International Franchise Association's VetFran Program. Franchisee and its owners must also execute general releases of claims against Annex Brands.