What does the Annex Brands franchise agreement require regarding the individuals executing the agreement on behalf of the franchisee?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. The individuals executing this Agreement on behalf of Franchisee represent and warrant that the signatures listed below constitute all of the individuals, partners, directors, officers and/or shareholders of Franchisee necessary to bind Franchisee.
- D. The individuals executing this Agreement, including every individual having an ownership interest in any legal entity proposed as the Franchisee and any affiliates, parents, children or spouses of any such individual, have never been engaged in or been convicted of fraud, corruption, bribery, money laundering, narcotics trafficking or other crimes; nor been designated as a suspected terrorist as set forth on the list of Specially Designated National promulgated by the Office for Asset Control under the U.S. Department of Treasury; nor does any such individual otherwise support terrorism or provide money or financial services to terrorists.
- E. If any individual executing this Agreement, including every individual having an ownership interest in any legal entity proposed as the Franchisee, is not a U.S. citizen, each non-U.S. citizen is eligible under applicable U.S. immigration law to travel to and from the U.S. for training and other purposes required under this Agreement.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 Annex Brands Franchise Disclosure Document, the individuals who sign the franchise agreement on behalf of the franchisee must have the authority to bind the franchisee to the agreement. Specifically, the franchise agreement states that the signatures listed must represent all individuals, partners, directors, officers, and/or shareholders necessary to legally bind the franchisee entity. This ensures that Annex Brands has a legally enforceable agreement with the franchisee.
Additionally, Annex Brands requires that these individuals warrant and represent that they, including anyone with ownership interest in the franchisee entity, have not been involved in or convicted of certain illegal activities. These activities include fraud, corruption, bribery, money laundering, narcotics trafficking, or other crimes. They also cannot be designated as suspected terrorists by the U.S. Office for Asset Control. This requirement aims to protect Annex Brands' reputation and ensure that its franchisees are of good character.
Furthermore, if any individual executing the agreement is not a U.S. citizen, they must be eligible under U.S. immigration law to travel to and from the U.S. for training and other purposes related to the franchise agreement. This ensures that all necessary parties can participate in required training and business activities within the United States. These stipulations are important for Annex Brands to maintain legal and ethical standards within its franchise system.