Is the Annex Brands franchisee allowed to represent themselves as operating jointly with the franchisor?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
- During the term of the Franchise, Franchisee will hold itself out to its 3) prospective employees, and to its employees, as an independent contractor operating the Center pursuant to rights granted by Franchisor, but not jointly with Franchisor.
Franchisee will take any reasonable action that Franchisor considers necessary to that end, including: (i) stating conspicuously on each employment application that the prospective employee is applying to be Franchisee's employee and not an employee of Franchisor; (ii) stating Franchisee's entire business name, rather than just using Franchisor's brand name and/or logo, on Franchisee's payroll checks and/or payroll-related communications to employees; and (iii) requiring employees to sign acknowledgements that they are not employees of Franchisor, even though they are selling products and services identified by Franchisor's brand name and/or logo, are receiving payroll checks and other communications that contain Franchisor's brand name and/or logo, may have applied for jobs through Franchisor's website, or may communicate with or receive non-mandatory feedback, coaching or recommendations from representatives of Franchisor in emails or other electronic or written communications, or during telephone calls, meetings or inspections.
Franchisor reserves the right to specify and change the content and form of these statements and acknowledgements.
-
- Nothing in this Agreement authorizes Franchisee to make any contract, agreement, warranty or representation on Franchisor's behalf; to incur any obligation, debt or expense in Franchisor's name; or to make any representation to any third party tending to indicate a business relationship with Franchisor beyond that created under this Agreement.
Franchisor disclaims any liability for, and will not be liable under this Agreement for, any claim or judgment arising as a result of any such action by Franchisee.
Nor will Franchisor be liable by reason of any of Franchisee's acts or omissions in the operation of the Center, or for any claim or judgment arising therefrom against Franchisee or Franchisor.
Under this Agreement, no party is responsible for any obligations, debts or expenses of any other party.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from representing their business as operating jointly with Annex Brands. The franchise agreement stipulates that franchisees must present themselves as independent contractors who are operating the Center under the rights granted to them by Annex Brands.
To ensure this separation is clear, Annex Brands requires franchisees to take specific actions. These actions include stating on employment applications that the applicant is applying to work for the franchisee, not Annex Brands. Franchisees must also use their complete business name on payroll checks and related communications, rather than only using Annex Brands's brand name or logo. Additionally, employees may be required to sign acknowledgements confirming they are not employees of Annex Brands, even if they are selling products and services under the Annex Brands brand.
The agreement also states that franchisees are not authorized to make any agreements or warranties on behalf of Annex Brands, incur debts in Annex Brands's name, or make representations suggesting a business relationship beyond what is outlined in the franchise agreement. Annex Brands disclaims liability for any claims or judgments resulting from the franchisee's actions that violate these terms, further emphasizing the independent nature of the franchise operation.
These stipulations are common in franchising to protect the franchisor from potential liabilities and to clearly define the relationship between the franchisor and franchisee. Prospective Annex Brands franchisees should understand these requirements and ensure they comply with all guidelines to maintain a clear distinction between their independent business and the Annex Brands corporation.