What is the length of the renewal term for an Annex Brands franchise?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| (a) | Length of the franchise term | 2.A | 20 years. |
| (b) | Renewal or extension of the term | 14.A | An additional 20-year term. |
| (c) | Requirements for you to renew or extend | 14.A to C | Substantially comply with franchise agreement and all other agreements with us or our affiliates; notify us of intent to renew 6-12 months before 20-year anniversary of execution of franchise agreement; show evidence of right to possess site, or secure approved substitute site; fully comply with specifications and standards for franchised businesses; sign general release; sign then current franchise agreement and related agreements; pay renewal fee. At the expiration of the term, if you seek to renew your franchise, you may be asked to sign a new franchise agreement that contains terms and conditions materially different from those in your previous franchise agreement, such as different fee requirements and territorial rights. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 71–74)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the renewal term for a franchise is an additional 20-year term. To renew the franchise agreement, the franchisee must substantially comply with the existing franchise agreement and all other agreements with Annex Brands or its affiliates.
Additionally, the franchisee must notify Annex Brands of their intent to renew the agreement 6 to 12 months before the 20-year anniversary of the franchise agreement's execution. The franchisee must also show evidence of the right to possess the site or secure an approved substitute site. Full compliance with the specifications and standards for franchised businesses is required, and the franchisee must sign a general release and the then-current franchise agreement and related agreements. The franchisee will also need to pay a renewal fee to renew the franchise agreement.
The FDD states that the new franchise agreement may contain terms and conditions materially different from those in the previous franchise agreement. These differences can include different fee requirements and territorial rights. This means that while a franchisee has the option to renew, the terms of the renewal may not be as favorable as the original agreement, and it is important to carefully review the new agreement before committing to the additional 20-year term.