What part of the Annex Brands Franchise Agreement discusses the lease or sublease of premises for the center?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
B. LEASE OR SUBLEASE OF PREMISES FOR THE CENTER. Franchisor has the right to approve the terms of the lease or sublease of the Center. Franchisee agrees to deliver a copy of the proposed lease or sublease to Franchisor for its approval at least 10 days prior to its execution by Franchisee, and to deliver a final, executed copy to Franchisor within 5 days after execution. Franchisee agrees that it will not execute a lease or sublease for the Center that has, for any reason, been disapproved by Franchisor. Franchisee acknowledges and agrees that Franchisor's approval of the terms of any lease or sublease will not constitute a warranty or representation of any kind, expressed or implied, relating to the economic terms of such lease or
sublease. A lease or sublease for the Center will be subject to a Collateral Assignment of Lease (Attachment 5), will contain such terms as are reasonably acceptable to Franchisor, and, at Franchisor's option, will contain substantially the following provisions:
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, Subsection B of the Franchise Agreement addresses the lease or sublease of the premises for the center. It stipulates that Annex Brands has the right to approve the terms of the lease or sublease. The franchisee must submit a copy of the proposed lease or sublease to Annex Brands for approval at least 10 days before execution and provide a final, executed copy within 5 days after execution. The franchisee cannot execute a lease or sublease that Annex Brands has disapproved.
Annex Brands' approval of the lease or sublease terms does not constitute a warranty or representation regarding the economic terms of the lease or sublease. The lease or sublease will be subject to a Collateral Assignment of Lease (Attachment 5) and must contain terms reasonably acceptable to Annex Brands. At Annex Brands' option, the lease may include specific provisions outlined in the document.
These provisions ensure that Annex Brands maintains control over the location and terms of the lease, which is crucial for maintaining brand consistency and protecting their interests. The Collateral Assignment of Lease provides Annex Brands with additional security in case of franchisee default. Franchisees should carefully review these requirements and understand the implications of Annex Brands' approval rights before signing a lease or sublease agreement.