Does Annex Brands grant exclusive territories to its franchisees?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Y
Your retail center will receive a protected area. If you remain in compliance with the franchise agreement, we will not license another retail center or establish a company-owned retail center of the same type designated on Attachment 3 within your protected area. In addition, your retail center may be located within the protected territory of a Commercial Logistics Center, and a Commercial Logistics Center, or a residential and commercial moving business operated under another Mark, may be located within your protected area if you operate a standard or flex retail center (see our Commercial Logistics Center Franchise Disclosure Document for more information). In addition, we may periodically acquire an entity or a portion of its assets (i.e., franchise agreements, contracts, licenses, etc.), or we or a portion of our assets (i.e., franchise agreements, contracts, licenses, etc.) may be acquired by an entity, where such entity or assets, owns, operates or licenses businesses that offer the same or similar products and services as your retail center offers. The location or operation of such entities, assets or businesses (franchised or otherwise) within your protected area will not violate the franchise agreement.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
We grant you the right to operate 1 retail center at a mutually agreed on location designated on Attachment 3 to the franchise agreement. Your marketing and advertising activities related to your retail center, whether taking place within or extending beyond your protected area, must conform to our policies, as specified in our Manuals, in writing or otherwise. The policies apply to Internet and other digital activities such as any approved websites, email marketing programs, social media platforms, online directory listings, and other online networking platforms, as well as to print and other traditional forms of marketing and advertising.
Generally, when you sign a lease for the premises of your retail center, we will determine your protected area according to the following factors: 1) location; 2) population; 3) proximity to similar businesses; 4) number of other businesses providing the same or similar services; 5) demography of the area; 6) growth potential; and 7) market trends. The following standards for each type of retail center applies:
If you operate a standard retail center or flex retail center, the protected area will be the geographic area within a ½-mile radius of the standard or flex retail center.
If you operate an express retail center, the protected area will be the facility in which the retail center is located.
Your protected area may be amended only by mutual written agreement among you, us and any regional licensee for your area.
As noted in Item 1, we acquired Pak Mail Centers of America, Inc. on April 20, 2016. The acquired franchisees may continue to operate businesses similar to our retail centers and Commercial Logistics Centers under the Pak Mail trade names in their existing territories. We acquired substantially all of the franchise assets and programs of EAGLE on October 31, 2014. The acquired franchisees may continue to operate retail centers under the Parcel Plus trade names in their existing territories. We acquired substantially all of the franchise assets and programs of Amailcenter Franchise Corporation ("AFC") in August 2011. The acquired franchisees may continue to operate retail centers under the AIM Mail trade names in their existing territories.
Source: Item 12 — Territory (FDD pages 62–64)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. However, Annex Brands does grant a protected area to its franchisees. If the franchisee remains in compliance with the franchise agreement, Annex Brands will not license another retail center or establish a company-owned retail center of the same type within the franchisee's protected area. The franchisee's retail center may be located within the protected territory of a Commercial Logistics Center, and vice versa, if the franchisee operates a standard or flex retail center.
Annex Brands may acquire other entities or assets that operate businesses offering similar products and services within a franchisee's protected area, which would not be a violation of the franchise agreement. Franchisees may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Annex Brands. The protected area is typically determined when the lease is signed, based on factors such as location, population, proximity to similar businesses, the number of other businesses providing similar services, demographics, growth potential, and market trends.
The size of the protected area depends on the type of retail center. For standard or flex retail centers, the protected area is generally a geographic area within a ½-mile radius of the center. For express retail centers, the protected area is limited to the facility in which the retail center is located. The protected area can only be amended by a mutual written agreement among the franchisee, Annex Brands, and any regional licensee for the area. All retail centers and Commercial Logistics Centers may solicit and service clients regardless of their geographic location, including locations within a franchisee's protected area, subject to any restrictions in their own franchise agreements.