What is the Annex Brands franchisee's responsibility if they suspect their password has been compromised?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will notify Franchisor immediately of any suspected data breach at or in connection with the Center. Franchisee will notify Franchisor in writing within 5 days of the commencement of any action, suit or proceeding; of the issuance of any order, writ, injunction, award or decree of any court, agency or other governmental instrumentality, which may adversely affect the operation or financial condition of Franchisee or the Center, or of any notice of violation of any law, ordinance or regulation relating to the Center.
Passwords & Confidentiality.
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 receive usernames and passwords for accessing the Intranet, email, and website portals, if established by Annex Brands. Franchisees must not disclose their password to anyone not under their direct supervision who does not need to know it. Franchisees must inform those under their supervision who have access to the password about the confidentiality obligation and indemnify Annex Brands for any confidentiality breaches by those individuals. Franchisees are responsible for the actions of personnel and agents to whom they distribute passwords and must prevent unauthorized access to the Intranet.
Annex Brands may change franchisee passwords periodically with prior written notice or without notice if a compromise is suspected. This highlights the importance of password security and the potential for disruption if a password is changed unexpectedly. Franchisees should implement strong password management practices and promptly address any suspected security breaches to protect access to Annex Brands' systems and confidential information.
Additionally, the franchisee is obligated to notify Annex Brands immediately of any suspected data breach at or in connection with the Center. This requirement extends beyond password compromises to any situation where data security may be at risk. Franchisees must also notify Annex Brands in writing within 5 days of the commencement of any action, suit or proceeding, or of the issuance of any order, writ, injunction, award or decree of any court, agency or other governmental instrumentality, which may adversely affect the operation or financial condition of Franchisee or the Center, or of any notice of violation of any law, ordinance or regulation relating to the Center.