What is the franchisee required to hold itself out as to the public during the term of the Annex Brands franchise?
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.
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- 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' 2025 Franchise Disclosure Document, during the franchise term, franchisees must present themselves as independent contractors who are operating their Centers under the rights granted to them by Annex Brands. However, this relationship is not a joint venture with Annex Brands.
To ensure this distinction is clear, Annex Brands franchisees must take specific actions. These include stating on employment applications that prospective employees are applying to work for the franchisee, not Annex Brands. Franchisees must also use their complete business name, rather than just the Annex Brands brand name and/or logo, on payroll checks and other payroll-related communications. Additionally, franchisees must have their employees sign acknowledgements confirming they are not employees of Annex Brands, even though they may be selling products and services identified by the Annex Brands brand name and/or logo.
Annex Brands retains the right to specify and modify the content and format of these statements and acknowledgements. The franchise agreement explicitly states that franchisees are not authorized to make any contracts, agreements, warranties, or representations on behalf of Annex Brands, nor can they incur any obligations, debts, or expenses in Annex Brands' name. Franchisees also cannot make representations to third parties that suggest a business relationship beyond what is outlined in the franchise agreement.
Annex Brands disclaims any liability for claims or judgments resulting from actions taken by the franchisee. Similarly, Annex Brands is not liable for any acts or omissions by the franchisee in the operation of the Center, or for any claims or judgments arising from those actions against either the franchisee or Annex Brands. The agreement clearly states that no party is responsible for the obligations, debts, or expenses of any other party.