What happens if an Annex Brands franchisee is unable to maintain possession of the Center for renewal?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Franchisee has maintained possession of the Center, and by the expiration of the term of the Franchise granted under this Agreement, has brought the Center into full compliance with the specifications and standards then applicable for Centers operating under the specified brand; or Franchisee has secured substitute premises approved by Franchisor prior to the expiration of the term of the Franchise granted under this Agreement, if Franchisee is unable to maintain possession of the Center, or if in Franchisor's reasonable business judgment the Center should be relocated;
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, a franchisee who cannot maintain possession of their current center location can still renew their franchise agreement. To do so, the Annex Brands franchisee must secure a substitute premises approved by Annex Brands before the current franchise term expires. Alternatively, Annex Brands may require relocation of the Center based on their reasonable business judgment.
To be eligible for renewal, the franchisee must also meet several other conditions. They must have substantially complied with all agreements during the franchise term and remain in compliance up to the renewal date. The franchisee needs to provide written notice of their intent to renew within a specific timeframe: not more than 12 months and not less than 6 months before the 20-year anniversary of the agreement. Additionally, the franchisee must execute renewal agreements and releases and pay an $8,500 renewal fee.
This policy provides some flexibility for Annex Brands franchisees facing lease issues or when relocation might benefit the business. However, it's crucial for franchisees to proactively address any potential issues with their existing location well in advance of the renewal deadline to allow sufficient time to find and secure an alternative site that meets Annex Brands' approval.