What is the Annex Brands franchisee's obligation regarding cooperation with Annex Brands representatives during inspections or audits?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
To determine whether Franchisee is complying with this Agreement, Franchisor will have the right at any time during business hours, and without prior notice to Franchisee, to inspect the Center, interview personnel of the Center, and conduct an equipment audit of the Center. Franchisee will cooperate with representatives of Franchisor making any such inspection or conducting such interviews or audit. Any feedback, coaching or recommendations given by Franchisor or its agents to any personnel of the Center during any inspection will be informational and non-mandatory, and Franchisee acknowledges that it may be required to communicate with, give instructions to, train or retrain those personnel during or after the inspection in order to bring the operation of the Center into compliance with the System.
Franchisor will have the right at any time during business hours, upon at least 2 days' prior written notice to Franchisee, to inspect and audit, or cause to be inspected and audited (together with a right to make photocopies), the business and accounting records, sales and income tax returns, marketing/advertising materials and supporting invoices, and other records of the Center and of Franchisee. Franchisee will cooperate with representatives of Franchisor, independent contractors and/or accountants hired by Franchisor to conduct any such inspection or audit.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees have specific obligations regarding cooperation during inspections and audits. Annex Brands has the right to inspect the Center, interview personnel, and conduct equipment audits at any time during business hours without prior notice to the franchisee. The franchisee is required to cooperate with Annex Brands representatives during these inspections, interviews, or audits.
Any feedback, coaching, or recommendations provided by Annex Brands or its agents to the Center's personnel during an inspection are considered informational and non-mandatory. However, Annex Brands notes that the franchisee may be required to communicate with, instruct, train, or retrain personnel to ensure the Center complies with the Annex Brands system standards.
Additionally, Annex Brands has the right to inspect and audit the business and accounting records, sales and income tax returns, marketing/advertising materials, and other records of the Center. This inspection can occur at any time during business hours, with at least two days' prior written notice to the franchisee. Again, the franchisee must cooperate with Annex Brands representatives, independent contractors, or accountants hired by Annex Brands to conduct such inspections or audits.