What happens if an Annex Brands franchisee refuses to transfer their domain name after termination?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
the Center. Franchisee will promptly notify its telephone service provider and all listing agencies, as well as its Internet service provider or comparable authorities, of the discontinuance of Franchisee's right to use any telephone and fax numbers and any classified or other telephone directory listings associated with the Marks, or any email addresses, domain names, email marketing programs, social media platforms, online directory listings, other networking platform listings or other comparable electronic identities that may use the Marks or relate to the Center. At the direction of Franchisor, Franchisee will promptly authorize the immediate transfer to Franchisor or its designee or authorize termination of the service. Franchisee authorizes Franchisor, and hereby appoints Franchisor and any officer of Franchisor as his, her or their attorney-in-fact, to direct the service providers and all listing agencies to transfer same to Franchisor or at Franchisor's direction, should Franchisee fail or refuse to do so, and the service providers and all listing agencies may accept such direction or this Agreement as conclusive of the exclusive right of Franchisor in such telephone and fax numbers and directory listings, email addresses, domain names, email marketing programs, social media platforms, online directory listings, and other networking platform listings, or other comparable electronic identities, and Franchisor's authority to direct their transfer or termination (see Attachment 4). Franchisee agrees to provide to Franchisor any other assistance, documentation, or information required to effectuate the transfer of these items; and
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- Franchisee will furnish to Franchisor, at Franchisor's request, a copy of the Center's sales history and customer database for the most recent 2-year period (or shorter if applicable) prior to the effective date of any transfer, or after the expiration, termination or non-renewal of the Franchise.
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- Franchisee will furnish to Franchisor, within 30 days after the effective date of any transfer, or after the expiration, termination or non-renewal of the Franchise, evidence satisfactory to Franchisor of Franchisee's compliance with the foregoing obligations.
- C. CONFIDENTIAL INFORMATION.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, if a franchisee fails or refuses to transfer their domain name, email addresses, email marketing programs, social media platforms, online directory listings, or other comparable electronic identities after the termination, expiration, or non-renewal of the franchise, Annex Brands is authorized to act on the franchisee's behalf.
Specifically, Annex Brands is appointed as the franchisee's attorney-in-fact to direct service providers and listing agencies to transfer these electronic identities to Annex Brands or its designee. This means Annex Brands has the legal authority to take control of the domain name and other online assets associated with the franchise if the franchisee does not willingly transfer them. The service providers and listing agencies may accept the franchise agreement as conclusive evidence of Annex Brands' exclusive right and authority to direct the transfer or termination of these assets.
This provision protects Annex Brands' brand and online presence by ensuring that terminated franchisees cannot continue to use domain names and online identities associated with the Annex Brands brand. It also requires the franchisee to provide any assistance, documentation, or information needed to facilitate the transfer. This is a fairly standard practice in franchising to maintain brand consistency and prevent confusion after a franchise relationship ends.
Additionally, Annex Brands can enter the former center and make alterations or removals at the franchisee's expense if the franchisee fails to do so themselves. The franchisee acknowledges that failure to make these alterations will cause irreparable injury to Annex Brands and consents to an ex parte order authorizing Annex Brands to take such action.