What is the Annex Brands franchisee's understanding and acknowledgement regarding the Fund's intention?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee understands and acknowledges that the Fund is intended to maximize general recognition and patronage of the Marks and Centers for the benefit of Franchisor and all Centers. Franchisee agrees to participate in all Fund programs. Franchisee has the right to set its own prices, except that Franchisee agrees to honor fully all coupons, price-reduction promotions and other promotions/programs as directed by Franchisor. Franchisor undertakes no obligation in developing, implementing, or administering marketing or public relations programs to ensure that expenditures which are proportionate or equivalent to contributions from Centers in any geographic area are made for that area. Franchisor assumes no direct or indirect liability or obligation to Franchisee with respect to the maintenance, direction, or administration of the Fund except as expressly provided in this Agreement.
Franchisor may, but is not required to, establish a "Matching Funds Advertising Program" (governed by rules set forth in the Manuals) whereby any Advertising Association to which Franchisee belongs (see Subsection 10.D of this Agreement) may apply to Franchisor for a portion of the funds allocated to the Matching Funds Advertising Program. In addition to any funds available from the Matching Funds Advertising Program, Franchisee is expected to use additional funds to conduct individual Center marketing/advertising.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees acknowledge that the marketing fund is intended to maximize recognition and patronage of the Annex Brands marks and centers. This fund benefits both the franchisor and all centers. As part of this agreement, franchisees must participate in all fund programs.
While franchisees have the right to set their own prices, they must honor all coupons, price-reduction promotions, and other programs as directed by Annex Brands. However, Annex Brands does not guarantee that marketing or public relations expenditures will be proportionate to the contributions from centers in any specific geographic area.
Annex Brands assumes no direct or indirect liability to the franchisee regarding the maintenance, direction, or administration of the fund, except as expressly provided in the franchise agreement. Annex Brands may establish a "Matching Funds Advertising Program," governed by rules in the manuals, where Advertising Associations to which a franchisee belongs may apply for funds. Franchisees are also expected to use additional funds for individual center marketing and advertising.