For Annex Brands franchises, which states require a state rider to the Franchise Agreement?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
STATE RIDER TO FRANCHISE AGREEMENT FOR CALIFORNIA, HAWAII, INDIANA, MICHIGAN, NEW YORK, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, AND WISCONSIN
The Franchise Agreement and any document signed in connection with the franchise are supplemented with the following language:
Name/Title: Name/Title: ANNEX BRANDS, INC. Name/Title:
ILLINOIS STATE RIDER TO FRANCHISE AGREEMENT
Illinois law governs the Franchise Agreement.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in the Franchise Agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, the Franchise Agreement may provide for arbitration to take place outside of Illinois.
Your rights upon Termination and Non-Renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
The Franchise Agreement and any document signed in connection with the franchise are supplemented with the following language:
Name/Title: Name/Title: ANNEX BRANDS, INC. Name/Title:
MINNESOTA STATE RIDER TO FRANCHISE AGREEMENT
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit Franchisor from requiring arbitration to be conducted outside Minnesota.
Nothing in the disclosure document or the Franchise Agreement can abrogate or reduce any of Franchisee's rights as provided for in the Minnesota Franchises Act, Minnesota Statutes, Chapter 80C, or Franchisee's rights to any procedure, forum or remedies provided for by the laws of the jurisdiction. The period of limitation for claims under the Minnesota Franchises Act is 3 years after the cause of action accrues.
Regarding the releases referenced in Subsections 8.A.3.a, 8.A.3.b, 8.A.3.c.i, 13.C.5, 14.A.4, and 14.C of the Franchise Agreement, the releases will exclude any and all claims that may arise under the Minnesota Franchises Act, if that las applies to Franchisee or its owners.
NORTH DAKOTA STATE RIDER TO FRANCHISE AGREEMENT
Precedence and Defined Terms.
This Rider is an integral part of, and is incorporated into, the Franchise Agreement.
Nevertheless, this Rider supersedes any inconsistent or conflicting provisions of the Franchise Agreement.
Terms not otherwise defined in this Rider have the meanings as defined in the Agreement.
Refund of Initial Fee.
Subparts A(3)(a), A(3)(b) and A(3)(c) in Section 8 of the Franchise Agreement is modified to state that any release required to be signed in connection with refund of the initial franchise fee under the Subparts will not apply to any claims arising under the North Dakota Franchise Investment Law.
Transfer.
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- Punitive Damages. Regarding Section 9 in Attachment 8 and punitive damages, the North Dakota Securities Commissioner has determined that requiring you to consent to waiver of punitive damages is unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law, and is unenforceable in the State of North Dakota.
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- Notice. The Franchise Agreement and any document signed in connection with the franchise are supplemented with the following language:
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement by any franchisor, franchise seller, or other person acting on behalf of franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
WASHINGTON STATE RIDER TO FRANCHISE AGREEMENT AND RELATED AGREEMENTS
The second paragraph in Section 3.A of the Franchise Agreement is deleted.
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
RCW 19.100.180 may supersede the Franchise Agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the Franchise Agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, several states require a state-specific rider to be attached to the standard Franchise Agreement. These riders modify certain provisions of the standard agreement to comply with state franchise laws. Specifically, the FDD includes state riders for California, Hawaii, Indiana, Michigan, New York, Rhode Island, South Dakota, Virginia, and Wisconsin. These riders ensure that the franchise agreement adheres to the specific legal requirements of these states.
In addition to the states listed above, Illinois, Minnesota, North Dakota, and Washington also require state-specific riders to the Annex Brands Franchise Agreement. The Illinois rider addresses issues such as jurisdiction and venue, ensuring that any provision designating these outside of Illinois is void, although arbitration may occur outside the state. It also references franchisee rights upon termination and non-renewal as defined in the Illinois Franchise Disclosure Act.
The Minnesota rider addresses arbitration locations, stating that the franchisor cannot require arbitration to occur outside of Minnesota. It also clarifies that nothing in the franchise agreement can reduce a franchisee's rights under the Minnesota Franchises Act. Furthermore, releases referenced in specific subsections of the agreement will exclude claims arising under the Minnesota Franchises Act.
The North Dakota rider modifies the section regarding refunds of the initial franchise fee, ensuring that any release signed in connection with the refund will not apply to claims arising under the North Dakota Franchise Investment Law. It also addresses issues such as liquidated damages and punitive damages, stating that requiring a waiver of punitive damages is unenforceable in North Dakota. The Washington rider deletes a specific paragraph in Section 3.A of the Franchise Agreement and states that the Washington Franchise Investment Protection Act will prevail in the event of a conflict of laws.