What happens if I don't purchase or lease items in the amounts that Annex Brands recommends?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase or lease equipment, supplies (including packaging materials, labels and forms), services (such as FedEx, UPS and DHL shipping services), furniture, interior and exterior signage, computer hardware, and software programs and licenses, in accordance with our
specifications. Also, you must purchase or lease these items in amounts that we recommend, based on our experience in the business, and to provide you proper planning, training and record keeping. Except as otherwise stated in this disclosure document, in our Manuals, in writing or otherwise, you may purchase or lease these items from any source. There are no approved suppliers in which any of our officers owns an interest.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 39–43)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees must purchase or lease equipment, supplies, services, furniture, signage, computer hardware, and software programs and licenses according to Annex Brands' specifications. Franchisees must also purchase or lease these items in amounts that Annex Brands recommends, based on their experience in the business, to provide proper planning, training, and record keeping. However, franchisees may purchase or lease these items from any source unless otherwise stated in the disclosure document, manuals, or in writing.
This means that while Annex Brands recommends certain purchase or lease amounts, franchisees generally have the flexibility to source these items from suppliers of their choosing, provided they meet Annex Brands' specifications. The FDD does not explicitly state the consequences of not adhering to the recommended purchase amounts.
Prospective franchisees should inquire with Annex Brands about the specific implications of not meeting the recommended purchase amounts. Understanding the potential impact on training, planning, and overall business operations is crucial for making informed decisions. It would be prudent to discuss this with existing franchisees to understand the degree to which these recommendations are enforced and what flexibility exists in practice.