What is Annex Brands' policy on the replacement of obsolete items at the Center?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
A. CONDITION AND APPEARANCE OF THE CENTER. Franchisee agrees to maintain the condition and appearance of the Center consistent with the System and required uniform image of its franchised businesses as a modern, clean, attractive and efficiently operated Center, which offers high quality products to the public based on friendly, creative and efficient service. Franchisee agrees to perform or cause to be performed at Franchisee's expense whatever maintenance of the Center is required to maintain such condition, appearance, and efficient operation, including: continuous and thorough cleaning; periodic decoration and repair or remodeling, as necessary, of the interior and exterior of the Center; and replacement of worn-out or obsolete leasehold improvements, furnishings, fixtures, equipment, displays, signs, and graphics with approved leasehold improvements, furnishings, fixtures, equipment, displays, signs, and graphics. The Center must have new flooring, and the interior must be repainted to Franchisor's specifications at least once every 60 months. Any tile flooring must be cleaned daily and polished at least semi-annually, and any carpet flooring must be cleaned daily and dry-cleaned at least semi-annually, to Franchisor's specifications as necessary to maintain a clean appearance.
If Franchisee does not maintain the condition and appearance of the Center as is required by this Agreement, Franchisee will give Franchisor access to the Center on not less than 3 days' prior written notice from Franchisor, so that Franchisor may: 1) arrange for the necessary cleaning, repair, remodeling, upgrading, painting or decorating; and 2) replace the necessary leasehold improvements, furnishings, fixtures, equipment, displays, signs, or graphics. Franchisee must pay the entire cost thereof within 10 days of receipt of an invoice from Franchisor for the services or purchases. Franchisee's failure to give Franchisor access to the Center, or to reimburse Franchisor in accordance with this Subsection 9.A, is an act subject to the default and enforcement provisions of this Agreement.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees are responsible for replacing worn-out or obsolete items at their own expense. This includes leasehold improvements, furnishings, fixtures, equipment, displays, signs, and graphics. These replacements must be with items approved by Annex Brands.
Annex Brands requires franchisees to maintain the Center's condition and appearance to align with the system's standards. This involves continuous cleaning, periodic decoration, repairs, or remodeling. The interior of the Center must be repainted to Annex Brands' specifications at least once every 60 months. Tile flooring must be cleaned daily and polished semi-annually, while carpet flooring requires daily cleaning and semi-annual dry cleaning.
If a franchisee fails to maintain the Center's condition and appearance, Annex Brands has the right to access the Center with three days' notice to arrange for necessary services such as cleaning, repair, remodeling, or replacements. The franchisee is then responsible for paying the entire cost within 10 days of receiving an invoice from Annex Brands. Failure to provide access or reimbursement can lead to default and enforcement actions under the Franchise Agreement.
Overall, the franchisee bears the financial responsibility for keeping the Center up-to-date and in good condition, adhering to Annex Brands' standards. This ensures a consistent brand image across all locations, but it also means franchisees need to budget for ongoing maintenance and periodic upgrades.