Can a franchisee transfer their Annex Brands franchise without approval from Annex Brands?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE MAY NOT TRANSFER WITHOUT FRANCHISOR APPROVAL.
Franchisee understands and acknowledges that the rights and duties created by this Agreement are personal to Franchisee or its owners and that Franchisor has granted rights to Franchisee under this Agreement in reliance upon the individual or collective character, skill, aptitude, attitude, business ability, and financial capacity of Franchisee or its owners.
Accordingly, without the prior written approval of Franchisor, the Franchise (or any interest in the Franchise), this Agreement (or any interest in this Agreement), the Center (or any interest in the Center), or the assets of the Center that are not purchased for resale (or any interest in such assets), may not be voluntarily, involuntarily, directly or indirectly, assigned, sold or otherwise transferred by Franchisee or any owner of Franchisee.
Any such assignment, sale or other transfer without Franchisor's approval is a default of this Agreement and conveys no rights to or interests in the Franchise, this Agreement, the Center or the assets of the Center that are not assets purchased for resale, or Franchisee.
Assignments, sales or other transfers subject to the foregoing restriction include, without limitation, the following:
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- sale, gift or other transfer of capital stock, or of a partnership, LLC or other ownership interest, in Franchisee;
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- merger or consolidation of Franchisee with another corporation, or issuance of capital stock, partnership, LLC or other ownership interests in Franchisee;
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, a franchisee cannot transfer their franchise without prior written approval from Annex Brands. The FDD states that the rights and duties within the franchise agreement are personal to the franchisee, and Annex Brands has granted these rights based on the franchisee's individual characteristics, skills, business ability, and financial capacity.
This restriction applies to any voluntary or involuntary transfer of the franchise, the franchise agreement, the center, or the center's assets (excluding those purchased for resale). Transfers requiring approval include the sale, gift, or other transfer of capital stock or ownership interest in the franchise, as well as mergers or consolidations of the franchisee with another corporation.
Any transfer conducted without Annex Brands' prior written approval constitutes a default of the franchise agreement. Such unapproved transfers convey no rights or interests in the franchise, the agreement, the center, or the center's assets to the new party. This provision ensures that Annex Brands maintains control over who operates their franchises and upholds brand standards.