If Annex Brands establishes co-branding programs, what obligations does the franchisee have?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding other provisions in this Agreement, Franchisor reserves the right to establish relationships, partnerships, joint ventures, and other strategic alliances (collectively, "programs") with suppliers, retailers, service providers, and other franchise or distribution companies (collectively, "companies"), in which the products or services of those companies will be co-marketed with Franchisor's products and services, which may entail the promotion of the "brands" of those companies' products or services and the license of those companies' marks. If Franchisor establishes any programs of this type, Franchisee must participate in accordance with policies and requirements that Franchisor establishes, including the execution of separate licensing and distribution agreements in forms that Franchisor specifies, and the payment of reasonable fees related to the programs that may be in addition to royalty fees and marketing fees.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, if Annex Brands establishes co-branding programs, franchisees must participate according to the policies and requirements Annex Brands establishes. These obligations include executing separate licensing and distribution agreements in the forms Annex Brands specifies. Franchisees must also pay reasonable fees related to these programs, which may be in addition to regular royalty and marketing fees.
This means that as an Annex Brands franchisee, you may be required to co-market products or services with other companies that Annex Brands has partnered with. This could involve promoting the brands of these other companies and licensing their marks within your Annex Brands location. The specific details of your participation, including the agreements you need to sign and the fees you need to pay, will be determined by Annex Brands.
It is important for prospective franchisees to understand that these co-branding programs could add additional costs and obligations to their franchise agreement. The fees associated with these programs are separate from royalty and marketing fees, so franchisees should inquire about the potential scope and cost of these programs during their due diligence. Franchisees should also carefully review any licensing and distribution agreements required for participation to fully understand their rights and responsibilities.