Does Annex Brands pay a royalty for the license granted by the franchisee to reproduce materials?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
You hereby grant us a worldwide, perpetual license, without charge or payment of a royalty, to reproduce, distribute, transmit, create derivative works of, publicly display and publicly perform all materials and information you submit to us for posting in your web pages and website, and all materials and information you submit to our Intranet or newsgroups described in this Agreement, by all means and in any media now known or hereafter developed, including but not limited to the right to use such materials and information that we deem appropriate on similar web pages or websites of our other franchisees; and use your name and any likeness of you that you submit to us for posting in your web pages or website, or that you submit to us in connection with all advertising, marketing and promotional materials related to our website or your web pages or website; and sublicense and to authorize 3rd parties to do any, all or some of the things that we are permitted to do under this Agreement.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, franchisees grant Annex Brands a license to use materials they submit without Annex Brands paying a royalty. Specifically, the franchisee grants Annex Brands a worldwide, perpetual license to reproduce, distribute, transmit, create derivative works of, publicly display, and publicly perform all materials and information submitted for posting on web pages, websites, Intranet, or newsgroups. This license extends to any media now known or developed in the future.
Annex Brands can use these materials on similar web pages or websites of other franchisees. They can also use the franchisee's name and likeness in advertising, marketing, and promotional materials related to the website or web pages. Furthermore, Annex Brands has the right to sublicense and authorize third parties to use these materials.
This arrangement means that Annex Brands franchisees will not receive any royalty payments for the use of their submitted materials by Annex Brands or its sublicensees. Franchisees should consider this when deciding what materials to submit and understand that these materials can be used across the Annex Brands franchise system without additional compensation.