Is an Annex Brands franchisee responsible for the confidentiality of their password by those under their supervision?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree not to disclose your password to any person or entity who is not under your direct supervision and who does not have a need to know such password.
You agree to inform all persons under your supervision who may have access to such password of this obligation of confidentiality and you agree to indemnify and hold us harmless for any default of confidentiality by such persons.
You are responsible for the personnel and agents to whom you distribute passwords.
You must refrain from allowing access to our Intranet by any unauthorized 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 responsible for maintaining the confidentiality of their passwords, especially concerning individuals under their supervision. Annex Brands may provide franchisees with usernames and passwords to access the Intranet, email, and website portals. The franchisor may change these passwords periodically with prior written notice or without notice if a security compromise is suspected.
The franchisee explicitly agrees not to share their password with anyone not directly supervised or without a legitimate need to know. Furthermore, the franchisee must inform all supervised personnel who have access to the password about their confidentiality obligations. The franchisee is liable for any breaches of confidentiality by these individuals and must indemnify Annex Brands against any resulting damages.
This obligation extends to preventing unauthorized access to the Annex Brands Intranet. This means franchisees must actively manage and control who has access to these credentials and ensure that their staff understands the importance of keeping the password secure. This is a standard practice in franchising, as franchisors need to protect sensitive business information and maintain the integrity of their systems.