What information will Annex Brands provide to the franchisee after receiving the renewal notice?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee desires to renew the Franchise on the 20-year anniversary of the execution date of this Agreement, Franchisee must give Franchisor written notice of his, her or their desire to renew the Franchise not more than 12 months and not less than 6 months prior to the 20-year anniversary of the execution date of this Agreement. Within 90 days after its receipt of such timely given notice, Franchisor will give Franchisee written notice of: 1) reasons which could cause Franchisor not to renew, including any deficiencies which require correction and a schedule for correction of the deficiencies by Franchisee; and 2) Franchisor's then-current requirements relating to the image, appearance, decoration, furnishing, equipping and stocking of new Centers operating under the designated brand.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, if a franchisee provides timely written notice of their desire to renew their franchise, Annex Brands will respond within 90 days. Annex Brands will provide written notice that includes two key pieces of information. First, Annex Brands will detail any reasons that could cause them not to renew the franchise agreement. This includes outlining any deficiencies that need correction and providing a schedule for the franchisee to correct these issues.
Second, Annex Brands will communicate their then-current requirements regarding the image, appearance, decoration, furnishing, equipping, and stocking of new Centers operating under the designated brand. This ensures that the franchisee is aware of the standards expected for renewed franchise locations, allowing them to prepare for any necessary updates or changes to their Center.
This information is crucial for a franchisee considering renewal, as it allows them to understand the specific steps they need to take to meet Annex Brands' requirements and address any potential obstacles to renewal. The franchisee will need to comply with these requirements to successfully renew their franchise for an additional 20-year term.