In New York, what is the condition for Annex Brands to approve a transfer or assignment of the franchise?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
ailable by law.
- (5) Item 17 of this disclosure document, under the summary column of part (j), is modified to include the following language:
- However, no transfer or assignment will be made except to a person who, in our good faith judgment, is willing and able to assume our obligations under the franchise agreement.
- (6) Item 17 of this disclosure document, under the summary column of part (w), is modified to include the following language:
- The foregoing choice of law should not be considered a waiver of any right conferred on us or you by Article 13 of the General Business Law of New York.
Source: Item 23 — Receipts (FDD pages 110–299)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, in New York, a condition for Annex Brands to approve a transfer or assignment of the franchise is that the person must be willing and able to assume the obligations under the franchise agreement, in Annex Brands's good faith judgment. Additionally, a general release is required as a condition of transfer.
This means that if a franchisee in New York wants to sell or transfer their Annex Brands franchise to someone else, Annex Brands must believe that the potential new franchisee is capable of fulfilling the responsibilities outlined in the original franchise agreement. This assessment is based on Annex Brands's judgment.
Furthermore, the franchisee must provide a general release. This likely means the franchisee must sign a document releasing Annex Brands from any potential future claims related to the franchise agreement. This requirement could limit the franchisee's legal options in the event of a dispute after the transfer.