What is the Annex Brands franchisee's obligation regarding delivering a final, executed copy of the lease?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
B. LEASE OR SUBLEASE OF PREMISES FOR THE CENTER. Franchisor has the right to approve the terms of the lease or sublease of the Center. Franchisee agrees to deliver a copy of the proposed lease or sublease to Franchisor for its approval at least 10 days prior to its execution by Franchisee, and to deliver a final, executed copy to Franchisor within 5 days after execution. Franchisee agrees that it will not execute a lease or sublease for the Center that has, for any reason, been disapproved by Franchisor. Franchisee acknowledges and agrees that Franchisor's approval of the terms of any lease or sublease will not constitute a warranty or representation of any kind, expressed or implied, relating to the economic terms of such lease or
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, a franchisee must provide a copy of the proposed lease or sublease to Annex Brands for approval at least 10 days before the franchisee signs it. After the lease or sublease is executed, the franchisee must deliver a final, executed copy to Annex Brands within 5 days.
This requirement ensures that Annex Brands has the opportunity to review and approve the lease terms to protect its interests and brand standards. The initial review period allows Annex Brands to suggest changes or disapprove the lease if it does not meet their criteria. The quick turnaround for the final copy ensures Annex Brands has the complete and official lease agreement for their records and to ensure compliance.
Annex Brands also requires that the lease or sublease be subject to a Collateral Assignment of Lease, as detailed in Attachment 5 of the FDD. The lease must contain terms reasonably acceptable to Annex Brands and may include specific provisions allowing Annex Brands to take over the lease under certain conditions, receive sales information from the lessor, and cure defaults by the franchisee. These stipulations provide Annex Brands with additional security and control over the location of the franchise, which is a common practice in franchising to protect the brand and ensure business continuity.