For Annex Brands, what is the length of the renewal term for a franchise?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
F FRANCHISE
- A. FRANCHISEE'S RIGHT TO RENEW. Franchisee will have the right to renew the Franchise for an additional 20-year term, subject to the terms and conditions in Franchisee's then-current franchise agreement. The following renewal terms and conditions apply under this Agreement:
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- Franchisee has, during the entire term of the Franchise granted under this Agreement, substantially complied with all of the provisions of this Agreement and all of the provisions of any other agreements between Franchisee and Franchisor or any of its affiliates, and has stayed in substantial compliance with this Agreement and such agreements up to the date of renewal;
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- Franchisee has given written notice of renewal to Franchisor as provided in Subsection 14.B of this Agreement;
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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;
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- Franchisee has executed the renewal agreements and releases as provided in Subsection 14.C of this Agreement; and
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- Franchisee has paid Franchisor a $8,500
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Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, a franchisee has the option to renew their franchise agreement for an additional term of 20 years. This renewal is not automatic and is subject to specific terms and conditions outlined in the then-current franchise agreement.
To be eligible for renewal, the franchisee must have substantially complied with all provisions of the franchise agreement and any other agreements with Annex Brands or its affiliates throughout the entire term. They must also remain in substantial compliance up to the renewal date. The franchisee needs to provide written notice of their intent to renew to Annex Brands within a specific timeframe: not more than 12 months and not less than 6 months before the 20-year anniversary of the original agreement's execution date.
Further conditions for renewal include maintaining possession of the center and ensuring it meets the current specifications and standards for Annex Brands locations. If maintaining possession is not possible or if Annex Brands deems relocation necessary, the franchisee must secure an alternative location approved by Annex Brands. The franchisee is also required to execute the renewal agreements and releases as stipulated by Annex Brands and pay a renewal fee of $8,500. Failure to meet these conditions could result in the franchise not being renewed.