Is an Annex Brands franchisee required to participate in system-wide transportation programs?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee.
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- Franchisor may require Franchisee to participate in any system-wide transportation programs, which may include an international ocean program, in which Franchisor internally books international ocean shipments with the shipping lines, provides appropriate documentation, collects payments from customers, pays shipping lines, and completes transactions with Centers. Franchisee agrees to execute the then-current documents that may be necessary to participate in these system-wide programs, such as Attachment 7 for the international ocean program. Franchisor may charge a fee to the extent that it supplies or administers any such program.
- K. CO-BRANDING. Notwithstanding other provisions in this Agreement, Franchisor reserves the right to establish relationships, partnerships, joint ventures, and other strategic alliances (collectively, "programs") with suppliers, retailers, service providers, and other franchise or distribution companies (collectively, "companies"), in which the products or services of those companies will be co-marketed with Franchisor's products and services, which may entail the promotion of the "brands" of those companies' products or services and the license of those companies' marks. If Franchisor establishes any programs of this type, Franchisee must participate in accordance with policies and requirements that Franchisor establishes, including the execution of separate licensing and distribution agreements in forms that Franchisor specifies, and the payment of reasonable fees related to the programs that may be in addition to royalty fees and marketing fees.
10. MARKETING/ADVERTISING AND PROMOTION
A. BY FRANCHISOR. Recognizing the value of marketing to the goodwill and public image of Centers, Franchisor maintains, and administers a marketing fund (the "Fund") for such marketing as Franchisor, in its sole discretion, deems necessary or appropriate.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees may be required to participate in system-wide transportation programs. These programs may include an international ocean program where Annex Brands handles international ocean shipments, documentation, payments, and transactions with the Centers. Franchisees may need to execute documents to participate in these programs, such as Attachment 7 for the international ocean program, and Annex Brands may charge a fee for administering such programs.
In addition to system-wide transportation programs, Annex Brands franchisees must also participate in any group-wide or other franchisor-sponsored transit insurance program regarding small parcel, freight, or transit damage and related risks. Franchisees are responsible for paying all premiums assessed for this transit insurance program in a timely manner.
Annex Brands also reserves the right to establish strategic alliances with other companies, and franchisees may be required to participate in sales fulfillment or other programs related to these alliances. These programs could involve online estimating, purchasing, shipping services systems, or printing services employed by web-based sites or other platforms. Franchisees participating in these programs must service each order according to the program's terms, and Annex Brands or the program supplier may require franchisees to pay a reasonable fee for business generated under such programs.
These requirements mean that franchisees must be prepared to integrate their operations with Annex Brands' broader systems and programs, which could involve additional costs and operational adjustments. Franchisees should carefully consider these obligations and associated costs when evaluating the franchise opportunity.