What page of the Annex Brands franchise agreement outlines the franchisee's continuing obligations upon transfer, expiration, termination, or non-renewal of the franchise?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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16. RIGHTS AND OBLIGATIONS OF FRANCHISOR AND FRANCHISEE UPON TRANSFER, OR UPON EXPIRATION, TERMINATION OR NON-RENEWAL OF FRANCHISE
- A. PAYMENT OF AMOUNTS OWED TO FRANCHISOR. Franchisee agrees to pay to Franchisor and its affiliates within 10 days after the effective date of expiration, termination or non-renewal of the Franchise, such royalty fees, marketing fees, national convention participation deposits, technology services fees, insurance premiums, or other fees under this Agreement and all other agreements, expenses, equipment lease or rental payments and/or supplies payments, purchases from Franchisor and its affiliates, interest, late fees, or any other indebtedness to Franchisor or its affiliates which are then unpaid.
- B. PROTECTION OF MARKS AND GOODWILL VALUE. Franchisee agrees that after any transfer (as applicable), or after the expiration, termination or non-renewal of the Franchise:
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- Franchisee will not directly or indirectly at any time identify any business as a current or former Center, or in any manner identify itself as a current or former franchisee, licensee or dealer of or as otherwise associated with Franchisor, or use any Mark, any colorable imitation thereof, or other indicia of a Center in any manner or for any purpose, or utilize for any purpose any trade name, trademark, service mark, trade dress or other commercial symbol that suggests or indicates a connection or association with Franchisor or any of its affiliates or franchisees;
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- Franchisee will promptly remove from the Center, and discontinue using for any purpose, and will destroy or, at Franchisor's option and expense, promptly return to Franchisor, any and all signs, decor items, advertising materials, forms, print and digital communications, and other articles which display any of the Marks or any distinctive features, images, or designs associated with Centers, and at Franchisee's expense, make such alterations as may be necessary to distinguish the former Center so clearly from its former appearance and from other Centers as to prevent any possibility of confusion therewith by the public. If Franchisee fails to initiate immediately or completely such alterations and/or removals within such time as Franchisor deems appropriate, Franchisee agrees that Franchisor or its representative(s) may enter the former Center and adjacent areas without prior notice and forcibly, if necessary, make such alterations and/or removals, at Franchisee's sole risk and expense, without responsibility for any actual or consequential damages to the property of Franchisee or otherwise, and without liability for trespass or other tort or criminal act.
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Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 FDD, Section 16 of the Annex Brands franchise agreement, titled "RIGHTS AND OBLIGATIONS OF FRANCHISOR AND FRANCHISEE UPON TRANSFER, OR UPON EXPIRATION, TERMINATION OR NON-RENEWAL OF FRANCHISE," outlines the franchisee's continuing obligations when the franchise is transferred, expires, is terminated, or is not renewed. This section details the financial and operational responsibilities of the franchisee under such circumstances.
Specifically, upon the transfer, expiration, termination, or non-renewal of the Annex Brands franchise, the franchisee is obligated to pay all outstanding fees to Annex Brands and its affiliates within 10 days of the effective date. These fees include royalty fees, marketing fees, convention participation deposits, technology service fees, insurance premiums, equipment lease payments, and any other outstanding debts.
Additionally, the franchisee must protect Annex Brands' trademarks and goodwill by ceasing to identify any business as a current or former Annex Brands center. The franchisee must also remove all signs, decor, advertising, and other articles displaying Annex Brands' marks from the premises. The franchisee is responsible for altering the former center to clearly distinguish it from other Annex Brands locations to prevent public confusion. The franchisee must also cease using any confidential information and return all copies of the manuals to Annex Brands.