Where in the Annex Brands Franchise Agreement can I find information about center development?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
C. RELOCATION OF THE CENTER. If, during the term of the Franchise, the lease or sublease for the Center expires or terminates without fault of Franchisee, or if the Center is damaged, condemned, or otherwise rendered unusable, or if in the reasonable business judgment of Franchisor there is a change in the character of the location of the Center sufficiently detrimental to its business potential to warrant its relocation, Franchisor will grant approval for the relocation of the Center to a location within the Protected Area described in Attachment 3 meeting Franchisor's then-current standards for Center locations, and Franchisor's then-current standards relating to the proximity of other Centers and their protected areas. Franchisor's approval will be effective only if evidenced in writing. Any such relocation will be at Franchisee's sole expense, and Franchisee will promptly reimburse Franchisor for all reasonable expenses Franchisor incurs in connection with any such relocation.
3. DEVELOPMENT AND OPENING OF THE CENTER
LOCATION SELECTION. If the location for the Center has not been selected by Α. Franchisee and approved by Franchisor at the time of execution of this Agreement, then Franchisee agrees to find a location which is suitable for the operation of the Center and acceptable to Franchisor, and to open the Center for business at that location, within 365 days after the execution date of this Agreement. Franchisor will attempt to approve or disapprove any location within 30 days after Franchisee proposes it. Franchisor will not unreasonably withhold approval of a location that meets its standard site selection criteria for demographic characteristics, population of the area surrounding the site, competition from other businesses, the nature of other business in proximity to the site, commercial characteristics, visibility and accessibility, and the size, appearance and other physical characteristics that determine the suitability of the particular premises. Subject to the availability of Franchisor's personnel and at the request of Franchisee, Franchisor will make corporate personnel available to assist in location selection. Salaries and other expenses relating to corporate personnel will be borne by Franchisor. If Franchisee is unable to locate an acceptable site within 365 days after execution of this Agreement, Franchisor may terminate the Franchise at any time thereafter (see Subsection 8.A of this Agreement).
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, details regarding the development and opening of the center are found in Subsection 3 of the Franchise Agreement. Specifically, Subsection 3.A addresses location selection, stating that if a location hasn't been chosen and approved upon signing the agreement, the franchisee must find a suitable location and open the center within 365 days of the agreement's execution. Annex Brands commits to reviewing proposed locations within 30 days and will not unreasonably reject a site that meets their standard criteria. These criteria include demographic characteristics, population density, competition, the nature of nearby businesses, commercial characteristics, visibility, accessibility, and the physical attributes of the premises. Annex Brands may also provide corporate personnel to assist with location selection, with their salaries and expenses covered by Annex Brands. If a franchisee fails to secure an acceptable site within the 365-day timeframe, Annex Brands reserves the right to terminate the franchise agreement.
Subsection 3.C addresses relocation of the center. If the lease expires or terminates without the franchisee's fault, or if the center becomes unusable due to damage or condemnation, or if Annex Brands reasonably believes the location's character has changed detrimentally, Annex Brands will approve relocation within the Protected Area outlined in Attachment 3. The new location must meet Annex Brands' current standards for center locations and proximity to other centers. The approval must be in writing, and the relocation is at the franchisee's sole expense. The franchisee is also responsible for reimbursing Annex Brands for all reasonable expenses incurred during the relocation process.
These provisions outline the responsibilities and expectations for both Annex Brands and the franchisee in terms of selecting, approving, and potentially relocating the center. It is important for prospective franchisees to carefully review these sections to understand the timelines, criteria, and financial implications associated with center development and location.