Are franchisees required to resolve disputes with Annex Brands through arbitration?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
ute Resolution. This Agreement will be (a) deemed made and entered into, and (b) construed and governed under and in accordance with the laws of the State of California. Any party may, but is not required to, submit to any court of competent jurisdiction any controversy, dispute or claim involving a request for monetary or injunctive relief concerning any Mark, involving a request for injunctive relief concerning any lease of real estate, or involving a request for temporary injunctive relief seeking enforcement of this Agreement. Except as provided in the previous sentence, all disputes arising out of or relating to this Agreement, or rendered under this Agreement, or a default of this Agreement, that cannot be settled amicably, will be resolved by arbitration in person in San Diego, California before 1 neutral arbitrator and administered under the Commercial Arbitration Rules of the American Arbitration Association. Any provisional or equitable remedy that would be available from a court of law will be available from the arbitrator. Judgment on the award of the arbitrator may be enforced in any court having jurisdiction thereof. The parties consent to the non-exclusive jurisdiction of the federal and state courts located in San Diego County, California for any action (a) to compel arbitration, (b) to enforce the award of the arbitrator or (c) at any time before the qualification and
appointment of the arbitrator, for temporary, interim or provisional equitable remedies. The parties further consent to service of process in any such action by certified mail, return receipt requested, or by any other means permitted by law.
- Term & Termination. This Agreement is effective when we sign it and accept your franchise agreement. This Agreement will automatically terminate on expiration, termination or non-renewal of the franchise granted under your franchise agreement. We may cancel your passwords and otherwise suspend your access to our Intranet at any time if we give you written notice that you are in default of this Agreement or your franchise agreement. We will cancel your passwords and remove your website as soon as practicable after termination of this Agreement for any reason.
Name/Title: Name/Title: ANNEX BRANDS, INC.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees are generally required to resolve disputes through arbitration, with some exceptions. Specifically, disputes that cannot be settled amicably and arise out of or relate to the Franchise Agreement will be resolved by arbitration. This arbitration will take place in person in San Diego, California, before one neutral arbitrator and will be administered under the Commercial Arbitration Rules of the American Arbitration Association. Any provisional or equitable remedy that would be available from a court of law will be available from the arbitrator. Judgment on the award of the arbitrator may be enforced in any court having jurisdiction thereof.
There are exceptions to this arbitration requirement. Any party may submit to a court of competent jurisdiction any controversy, dispute, or claim involving a request for monetary or injunctive relief concerning any Mark, involving a request for injunctive relief concerning any lease of real estate, or involving a request for temporary injunctive relief seeking enforcement of the Franchise Agreement. The parties consent to the non-exclusive jurisdiction of the federal and state courts located in San Diego County, California for any action (a) to compel arbitration, (b) to enforce the award of the arbitrator or (c) at any time before the qualification and appointment of the arbitrator, for temporary, interim or provisional equitable remedies. The parties further consent to service of process in any such action by certified mail, return receipt requested, or by any other means permitted by law.
However, the Illinois State Rider to the Franchise Agreement states that any provision in the Franchise Agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void, although the Franchise Agreement may provide for arbitration to take place outside of Illinois. The Minnesota State Rider to the Franchise Agreement prohibits Annex Brands from requiring arbitration to be conducted outside Minnesota. These state-specific stipulations modify the general arbitration requirements outlined in the agreement, potentially offering franchisees in Illinois and Minnesota alternative dispute resolution options or venues.