In an Annex Brands franchise transfer, what consent is required from the lessor of the center?

According to the 2025 FDD, if the lease terms require it, the lessor of the Annex Brands center must consent to the assignment or sublease of the center to the transferee during a franchise transfer. This means that a franchisee looking to transfer their business must ensure the lessor approves the new franchisee taking over the lease. This is a standard practice in franchising, as the location of the business is often critical to its success, and the franchisor wants to ensure the new franchisee has secure tenure.

Annex Brands also requires a Collateral Assignment of Lease, which is subject to negotiation with the lessor. The lease or sublease for the center will be subject to this assignment and contain terms reasonably acceptable to Annex Brands. At Annex Brands's option, the lease may contain provisions allowing the franchisee to assign the lease to Annex Brands without the lessor's consent, requiring the lessor to disclose sales data to Annex Brands upon request, obligating the lessor to notify Annex Brands of any franchisee defaults and allowing Annex Brands time to cure the default, and permitting Annex Brands to enter the premises to remove branding materials after the lease or franchise terminates.

This requirement protects Annex Brands's interests by ensuring control over the location and preventing disruptions to the business. It also allows Annex Brands to step in and cure any defaults, maintaining the location's operation. Prospective franchisees should carefully review the lease agreement and understand the conditions under which the lessor's consent is required for a transfer. They should also be aware of the terms of the Collateral Assignment of Lease and how it affects their rights and obligations.