In an Annex Brands franchise transfer, what releases must the franchisee and its owners execute?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Except to the extent prohibited or restricted by applicable law, Franchisee and its owners must execute general releases, in forms satisfactory to Franchisor, of any and all claims against Franchisor and its affiliates and their respective officers, directors, employees, and agents.
No sale, assignment, transfer, conveyance, encumbrance or gift of any interest in the Franchise or this Agreement will release Franchisee or any other party to the transfer from the obligations or covenants in this Agreement, unless there is a specific written release by Franchisor.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 Annex Brands Franchise Disclosure Document, during a franchise transfer, the franchisee and their owners must execute general releases. These releases, in forms satisfactory to Annex Brands, waive any and all claims against Annex Brands, its affiliates, and their respective officers, directors, employees, and agents. This requirement is subject to applicable law, meaning that these releases are only required to the extent permitted by law.
This means that as part of transferring your Annex Brands franchise to a new owner, you and anyone who has an ownership stake in your franchise business will need to sign documents releasing Annex Brands from any potential legal claims. This is a standard practice in franchising to ensure that Annex Brands is protected from future liabilities related to the previous franchisee's operation of the business.
Prospective franchisees should carefully review the specific language of these releases with legal counsel to fully understand the scope of claims being waived. It is important to note that the releases must be in a form satisfactory to Annex Brands, giving them control over the terms. Franchisees should also be aware that the transfer will not release them from obligations under the franchise agreement unless Annex Brands provides a specific written release.