What are the notification deadline requirements for an Annex Brands franchisee to renew their franchise agreement?
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 the 2025 FDD, an Annex Brands franchisee seeking to renew their franchise agreement must notify Annex Brands of their intent to renew within a specific timeframe. To renew the franchise for an additional 20-year term, the franchisee must provide written notification to Annex Brands between 6 and 12 months before the 20-year anniversary of the original franchise agreement's execution.
In addition to providing timely notice, the Annex Brands franchisee must meet several other conditions to qualify for renewal. These conditions include demonstrating substantial compliance with the existing franchise agreement and all other agreements with Annex Brands or its affiliates. The franchisee must also provide evidence of their right to possess the current site or secure an approved substitute location. Furthermore, the franchisee must fully comply with all specifications and standards for franchised businesses, sign a general release, and execute the then-current franchise agreement and any related agreements. Finally, the franchisee is required to pay a renewal fee to finalize the renewal process.
It is important to note that when renewing the franchise agreement, Annex Brands may present a new franchise agreement with terms and conditions that differ materially from the previous agreement. These changes could include different fee requirements and territorial rights, which could significantly impact the franchisee's business operations and profitability. Therefore, prospective franchisees should carefully consider these potential changes and their implications before deciding to renew their franchise agreement with Annex Brands.