Is an Annex Brands franchisee required to sign the then-current franchise agreement to renew?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| (a) | Length of the franchise term | 2.A | 20 years. |
| (b) | Renewal or extension of the term | 14.A | An additional 20-year term. |
| (c) | Requirements for you to renew or extend | 14.A to C | Substantially comply with franchise agreement and all other agreements with us or our affiliates; notify us of intent to renew 6-12 months before 20-year anniversary of execution of franchise agreement; show evidence of right to possess site, or secure approved substitute site; fully comply with specifications and standards for franchised businesses; sign general release; sign then current franchise agreement and related agreements; pay renewal fee. At the expiration of the term, if you seek to renew your franchise, you may be asked to sign a new franchise agreement that contains terms and conditions materially different from those in your previous franchise agreement, such as different fee requirements and territorial rights. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 71–74)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, a franchisee must sign the then-current franchise agreement as part of the renewal process. The initial franchise term is 20 years, with an option to renew for an additional 20-year term. To renew the franchise agreement with Annex Brands, a franchisee must meet several requirements.
These requirements include substantially complying with the existing franchise agreement and all other agreements with Annex Brands or its affiliates. The franchisee must also notify Annex Brands of their intent to renew within 6 to 12 months before the initial 20-year term expires. Evidence of the right to possess the site or securing an approved substitute site is also necessary. Furthermore, the franchisee must fully comply with all specifications and standards for franchised businesses and sign a general release.
Most importantly, the franchisee must sign the then-current franchise agreement and any related agreements and pay a renewal fee. Annex Brands states that the new franchise agreement may contain terms and conditions that are materially different from the previous agreement, potentially affecting fee requirements and territorial rights. This means that when renewing, franchisees may face new obligations or changes to their existing rights, which could significantly impact their business operations and profitability.