Is the Annex Brands franchisee allowed to execute a lease or sublease that has been disapproved by the franchisor?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
B. LEASE OR SUBLEASE OF PREMISES FOR THE CENTER. Franchisor has the right to approve the terms of the lease or sublease of the Center. Franchisee agrees to deliver a copy of the proposed lease or sublease to Franchisor for its approval at least 10 days prior to its execution by Franchisee, and to deliver a final, executed copy to Franchisor within 5 days after execution. Franchisee agrees that it will not execute a lease or sublease for the Center that has, for any reason, been disapproved by Franchisor. Franchisee acknowledges and agrees that Franchisor's approval of the terms of any lease or sublease will not constitute a warranty or representation of any kind, expressed or implied, relating to the economic terms of such lease or
sublease. A lease or sublease for the Center will be subject to a Collateral Assignment of Lease (Attachment 5), will contain such terms as are reasonably acceptable to Franchisor, and, at Franchisor's option, will contain substantially the following provisions:
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, a franchisee is not allowed to execute a lease or sublease for their center that has been disapproved by Annex Brands for any reason. The franchisee must submit a copy of the proposed lease or sublease to Annex Brands for approval at least 10 days before the franchisee plans to sign it. After the lease or sublease is executed, the franchisee must provide a final, executed copy to Annex Brands within 5 days.
Annex Brands maintains the right to approve the terms of the lease or sublease. The lease or sublease will be subject to a Collateral Assignment of Lease and must include terms reasonably acceptable to Annex Brands. At Annex Brands' option, the lease may contain specific provisions that allow Annex Brands to assume the lease, receive sales information from the lessor, receive notice of any default by the franchisee, and enter the premises to remove Annex Brands' signs and materials after the lease or franchise terminates.
If Annex Brands cures any default by the franchisee under the lease, the franchisee is responsible for immediately paying Annex Brands for all costs and payments incurred during the cure. This requirement ensures that Annex Brands has control over the lease terms and can protect its brand and interests, while also ensuring the franchisee adheres to the approved lease terms.