If a prospective franchisee withholds permission for a background investigation, can Annex Brands still execute the Franchise Agreement?

Question

Accepted Answer

| I/we, Brands, Inc. ("Franchisor"), in its sole discretion and as it deems necessary, to investigate Franchisee's background. Franchisee understands that Franchisor may use an outside firm(s) to assist it in checking such information, and Franchisee specifically authorizes such an investigation by information services and outside entities of the Franchisor's choice. Franchisee understands that Franchisee may withhold permission and that in such a case, no investigation will be done, however, the execution of the Franchise Agreement by Franchisor may not be processed.              | ("Franchisee"), hereby authorize Annex |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|
| Franchisee hereby authorizes a representative of the Franchisor bearing this release to obtain any |  |
| information from credit reporting agencies, employers, individuals, schools, residences or criminal |  |
| justice agencies relating to Franchisee's activities, in Franchisor's sole discretion and as Franchisor |  |
| deems necessary. This information may include, but is not limited to, academic, achievement, |  |
| arrest, attendance, conviction, credit, disciplinary, performance, personal history and residential |  |
| records. Franchisee hereby directs you to release such information on request of the bearer. |  |
| Franchisee hereby releases and holds harmless any individual, including but not limited to record |  |
| custodians, from any and all liability, whether from negligence or violation or any other applicable |  |
| legal standard that may potentially result from the release and/or use of such information. |  |
| FRANCHISEE:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                 |
| By:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                 |
| Name/Title:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                 |
| Date:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                 |
| By:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                 |
| Name/Title:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                 |

Source: Item 22 — Contracts (FDD pages 109–110)

If a prospective franchisee withholds permission for a background investigation, can Annex Brands still execute the Franchise Agreement?

Answer from 2025 FDD Document

What This Means (2025 FDD)

I/we, Brands, Inc. ("Franchisor"), in its sole discretion and as it deems necessary, to investigate Franchisee's background. Franchisee understands that Franchisor may use an outside firm(s) to assist it in checking such information, and Franchisee specifically authorizes such an investigation by information services and outside entities of the Franchisor's choice. Franchisee understands that Franchisee may withhold permission and that in such a case, no investigation will be done, however, the execution of the Franchise Agreement by Franchisor may not be processed.	("Franchisee"), hereby authorize Annex
Franchisee hereby authorizes a representative of the Franchisor bearing this release to obtain any
information from credit reporting agencies, employers, individuals, schools, residences or criminal
justice agencies relating to Franchisee's activities, in Franchisor's sole discretion and as Franchisor
deems necessary. This information may include, but is not limited to, academic, achievement,
arrest, attendance, conviction, credit, disciplinary, performance, personal history and residential
records. Franchisee hereby directs you to release such information on request of the bearer.
Franchisee hereby releases and holds harmless any individual, including but not limited to record
custodians, from any and all liability, whether from negligence or violation or any other applicable
legal standard that may potentially result from the release and/or use of such information.
FRANCHISEE:
By:
Name/Title:
Date:
By:
Name/Title: