On what page of the Annex Brands franchise agreement can I find information about insurance requirements?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee fails or refuses to acquire and maintain insurance coverage conforming to the standards and limits prescribed by Franchisor, or to furnish satisfactory evidence of his, her or their insurance coverage, at its option and in addition to its other rights and remedies under this Agreement, Franchisor may but is not required to obtain, through agents and insurance companies of Franchisor's choosing, such insurance coverage on behalf of Franchisee as is necessary to meet Franchisor's standards. Franchisee will fully cooperate with Franchisor in its effort to obtain such insurance policies, will promptly execute all forms or instruments required to obtain any such insurance and will allow any inspections of the Center which are required to obtain the insurance. Payments for such insurance will be borne by Franchisee, and Franchisee expressly agrees to pay the required premiums or to reimburse Franchisor, on demand, any costs and premiums incurred by Franchisor. Nothing contained in this Agreement will be construed or deemed to impose any duty or obligation upon Franchisor to obtain or maintain any specific forms, kinds or amounts of insurance for or on behalf of Franchisee.
Failure by Franchisee to purchase or maintain any insurance required by this Agreement, or failure to reimburse Franchisor for its purchase of such insurance on behalf of Franchisee, will constitute a material default of this Agreement which, unless waived by Franchisor, will entitle Franchisor to terminate the Franchise in accordance with Subsection 15.B of this Agreement.
In addition to carrying insurance coverage, as described elsewhere in this Agreement, Franchisee agrees to participate in any group-wide or other then-current Franchisor-sponsored transit insurance program regarding small parcel, freight or transit damage and related risks, and Franchisee agrees to pay fully and timely all premiums assessed for such transit insurance program.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
The 2025 Annex Brands Franchise Disclosure Document does not specify a particular page number in the franchise agreement where insurance requirements are detailed. However, Item 22 discusses insurance requirements within the franchise agreement. It states that franchisees must acquire and maintain insurance coverage that conforms to the standards and limits prescribed by Annex Brands. If a franchisee fails to do so, Annex Brands has the option to obtain the necessary insurance coverage on behalf of the franchisee, with the franchisee bearing the costs of premiums and any related expenses.
According to the FDD, failure to purchase or maintain required insurance or to reimburse Annex Brands for insurance purchased on the franchisee's behalf constitutes a material default of the agreement, potentially leading to termination of the franchise.
In addition to standard insurance coverage, Annex Brands franchisees are required to participate in any group-wide or franchisor-sponsored transit insurance program regarding small parcel, freight, or transit damage and related risks. Franchisees must pay all premiums assessed for this transit insurance program in a timely manner. Prospective franchisees should carefully review the full franchise agreement and consult with Annex Brands to understand the specific insurance types, coverage levels, and program details required for their franchise.