What is the Annex Brands franchisee's responsibility if their password is compromised?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
You will receive a user name and passwords for utilizing our Intranet, email and website portals, if established.
We may change your passwords periodically after giving you prior written notice.
We may change your passwords without notice if an alleged compromise exists.
You agree not to disclose your password to any person or entity who is not under your direct supervision and who does not have a need to know such password.
You agree to inform all persons under your supervision who may have access to such password of this obligation of confidentiality and you agree to indemnify and hold us harmless for any default of confidentiality by such persons.
You are responsible for the personnel and agents to whom you distribute passwords.
You must refrain from allowing access to our Intranet by any unauthorized party.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees are responsible for maintaining the confidentiality of their passwords used to access the Intranet, email, and website portals. Franchisees must not disclose their passwords to anyone not directly supervised by them or without a need to know. They are also obligated to inform those under their supervision about the confidentiality requirements and indemnify Annex Brands for any breaches of confidentiality by these individuals.
Annex Brands may change franchisee passwords periodically with prior written notice, but can also change them without notice if a compromise is suspected. Franchisees must prevent unauthorized access to the Intranet. These measures are in place to protect the security and integrity of Annex Brands' online resources and confidential information.
In practical terms, this means an Annex Brands franchisee needs to have strict internal policies about password management. They should train their employees on data security and ensure that access to sensitive online platforms is carefully controlled. The franchisee bears the risk if their employees or agents mishandle the passwords, potentially leading to liability for any resulting damages or breaches of confidentiality. This is a fairly standard requirement in franchising, as franchisors need to protect their systems and brand reputation.