Can the Annex Brands franchise term be renewed or extended?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| (a) | Length of the franchise term | 2.A | 20 years. |
| (b) | Renewal or extension of the term | 14.A | An additional 20-year term. |
| (c) | Requirements for you to renew or extend | 14.A to C | Substantially comply with franchise agreement and all other agreements with us or our affiliates; notify us of intent to renew 6-12 months before 20-year anniversary of execution of franchise agreement; show evidence of right to possess site, or secure approved substitute site; fully comply with specifications and standards for franchised businesses; sign general release; sign then current franchise agreement and related agreements; pay renewal fee. At the expiration of the term, if you seek to renew your franchise, you may be asked to sign a new franchise agreement that contains terms and conditions materially different from those in your previous franchise agreement, such as different fee requirements and territorial rights. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 71–74)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, the franchise term is 20 years, with the option for an additional 20-year renewal term. To renew the franchise agreement, a franchisee must substantially comply with the existing franchise agreement and all other agreements with Annex Brands or its affiliates.
The franchisee must also notify Annex Brands of their intent to renew the agreement 6 to 12 months before the initial 20-year term expires. Evidence of the right to possess the site, or securing an approved substitute site, is required for renewal. The franchisee must fully comply with all specifications and standards for franchised businesses, sign a general release, and sign the then-current franchise agreement and related agreements.
Furthermore, the franchisee must pay a renewal fee to extend the franchise term. Annex Brands may ask the franchisee to sign a new franchise agreement that contains terms and conditions materially different from those in the previous agreement. These differences could include altered fee requirements and territorial rights, which could significantly impact the franchisee's business operations and profitability.
Prospective franchisees should carefully consider these renewal conditions and the potential for changes in the franchise agreement. It is important to discuss these terms with Annex Brands to fully understand the obligations and potential financial impacts of renewing the franchise agreement.