What are the Annex Brands franchisee's obligations regarding the Center's condition upon renewal?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
F FRANCHISE
- A. FRANCHISEE'S RIGHT TO RENEW. Franchisee will have the right to renew the Franchise for an additional 20-year term, subject to the terms and conditions in Franchisee's then-current franchise agreement. The following renewal terms and conditions apply under this Agreement:
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- Franchisee has, during the entire term of the Franchise granted under this Agreement, substantially complied with all of the provisions of this Agreement and all of the provisions of any other agreements between Franchisee and Franchisor or any of its affiliates, and has stayed in substantial compliance with this Agreement and such agreements up to the date of renewal;
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- Franchisee has given written notice of renewal to Franchisor as provided in Subsection 14.B of this Agreement;
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- Franchisee has maintained possession of the Center, and by the expiration of the term of the Franchise granted under this Agreement, has brought the Center into full compliance with the specifications and standards then applicable for Centers operating under the specified brand; or Franchisee has secured substitute premises approved by Franchisor prior to the expiration of the term of the Franchise granted under this Agreement, if Franchisee is unable to maintain possession of the Center, or if in Franchisor's reasonable business judgment the Center should be relocated;
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- Franchisee has executed the renewal agreements and releases as provided in Subsection 14.C of this Agreement; and
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- Franchisee has paid Franchisor a $8,500
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Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, a franchisee seeking to renew their franchise for an additional 20-year term must meet specific conditions related to the Center's condition. The franchisee must have substantially complied with all agreements during the original term and continue to be in compliance up to the renewal date.
Specifically, the franchisee must maintain possession of the Center and ensure it fully complies with the specifications and standards applicable to Centers operating under the Annex Brands name at the time of renewal. If maintaining possession is not possible, or if Annex Brands reasonably believes the Center should be relocated, the franchisee must secure a substitute premises approved by Annex Brands before the original term expires.
In addition to the Center's condition, the franchisee must provide written notice of their intent to renew within a specified timeframe, execute renewal agreements and releases, and pay an $8,500 renewal fee. Annex Brands will then notify the franchisee of any deficiencies requiring correction and their current requirements for new Centers. These stipulations ensure that renewed franchises meet the brand's standards and maintain consistency across all locations.