What is the Annex Brands franchisee's responsibility regarding the Center's leasehold improvements?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
THE CENTER
A. CONDITION AND APPEARANCE OF THE CENTER. Franchisee agrees to maintain the condition and appearance of the Center consistent with the System and required uniform image of its franchised businesses as a modern, clean, attractive and efficiently operated Center, which offers high quality products to the public based on friendly, creative and efficient service. Franchisee agrees to perform or cause to be performed at Franchisee's expense whatever maintenance of the Center is required to maintain such condition, appearance, and efficient operation, including: continuous and thorough cleaning; periodic decoration and repair or remodeling, as necessary, of the interior and exterior of the Center; and replacement of worn-out or obsolete leasehold improvements, furnishings, fixtures, equipment, displays, signs, and graphics with approved leasehold improvements, furnishings, fixtures, equipment, displays, signs, and graphics. The Center must have new flooring, and the interior must be repainted to Franchisor's specifications at least once every 60 months. Any tile flooring must be cleaned daily and polished at least semi-annually, and any carpet flooring must be cleaned daily and dry-cleaned at least semi-annually, to Franchisor's specifications as necessary to maintain a clean appearance.
If Franchisee does not maintain the condition and appearance of the Center as is required by this Agreement, Franchisee will give Franchisor access to the Center on not less than 3 days' prior written notice from Franchisor, so that Franchisor may: 1) arrange for the necessary cleaning, repair, remodeling, upgrading, painting or decorating; and 2) replace the necessary leasehold improvements, furnishings, fixtures, equipment, displays, signs, or graphics. Franchisee must pay the entire cost thereof within 10 days of receipt of an invoice from Franchisor for the services or purchases. Franchisee's failure to give Franchisor access to the Center, or to reimburse Franchisor in accordance with this Subsection 9.A, is an act subject to the default and enforcement provisions of this Agreement.
No replacement of leasehold improvements, furnishings, equipment, displays, signs, or graphics will be made, nor will any material alteration to the Center as originally developed or approved by Franchisor be made, without Franchisor's prior written consent. Franchisee will place or display at and within the Center only such signs, logos, emblems, lettering, graphics, and display materials as are periodically approved or designated in writing by Franchisor. Franchisor may require any changes, replacements, or modifications not previously approved by Franchisor to be rectified at Franchisee's sole expense and Franchisee will promptly make any such changes, replacements or modifications.
B. AUTHORIZED PRODUCTS, EQUIPMENT, AND SERVICES. The presentation of a uniform image to the public and the resulting positive reputation and goodwill are essential elements of a successful franchise system.
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 condition and appearance of their Center to align with the brand's standards. This includes performing necessary maintenance at the franchisee's expense to keep the Center modern, clean, and attractive. Maintenance includes continuous cleaning, periodic decoration, repairs, or remodeling of both the interior and exterior of the Center.
Franchisees must also replace worn-out or obsolete leasehold improvements, furnishings, fixtures, equipment, displays, signs, and graphics with approved items. Specifically, the Center's flooring must be new, and the interior must be repainted to Annex Brands' specifications at least once every 60 months. Tile flooring must be cleaned daily and polished semi-annually, while carpet flooring requires daily cleaning and semi-annual dry cleaning.
If a franchisee fails to maintain the Center's condition and appearance as required, Annex Brands has the right to access the Center with 3 days' written notice to arrange for the necessary cleaning, repairs, remodeling, or replacements. The franchisee is then responsible for paying the entire cost within 10 days of receiving an invoice from Annex Brands. Failure to provide access or reimburse Annex Brands can result in default and enforcement actions under the Franchise Agreement.
Franchisees must also obtain prior written consent from Annex Brands before making any replacements of leasehold improvements, furnishings, equipment, displays, signs, or graphics, or any material alterations to the Center. Annex Brands retains the right to require franchisees to rectify any changes, replacements, or modifications not previously approved, at the franchisee's sole expense.