Does Annex Brands grant franchisees an exclusive territory?
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.
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 size of the protected area depends on the type of retail center. For standard or flex retail centers, the protected area is the geographic area within a ½-mile radius of the center. For express retail centers, the protected area is the facility in which the retail center is located.
Even within the protected area, franchisees may face competition from other franchisees, outlets that Annex Brands owns, other channels of distribution, or competitive brands that Annex Brands controls. Additionally, a Commercial Logistics Center, or a residential and commercial moving business operated under another Mark, may be located within a standard or flex retail center's protected area. The protected area can be amended by mutual written agreement among the franchisee, Annex Brands, and any regional licensee for the area.
Annex Brands also retains the right to acquire other franchise systems, and those acquired franchisees may continue to operate similar businesses under their existing trade names and territories. All retail centers and Commercial Logistics Centers, subject to any restrictions in their own franchise agreements, may solicit and service clients and otherwise advertise and offer their respective products and services to any individuals or entities regardless of those individuals' or entities' geographic locations, including any locations within your protected area. Annex Brands may solicit and service clients nationwide on its website and may pay franchisees a commission (typically from 10% to 50%) for website sales to clients located within their protected area.