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What are the potential consequences for an Annex Brands franchisee if they fail to comply with the requirement to maintain a professional image?

Annex_Brands Franchise · 2025 FDD

Answer 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.

What This Means (2025 FDD)

According to the 2025 FDD, Annex Brands franchisees must maintain the condition and appearance of their center to align with the system's uniform image. This includes keeping the center modern, clean, attractive, and efficiently operated, offering high-quality products with friendly service. Regular maintenance is required at the franchisee's expense, covering continuous cleaning, periodic decoration, repairs, remodeling, and replacement of obsolete items with approved versions. Specifically, flooring must be new, and the interior repainted every 60 months. Tile floors need daily cleaning and semi-annual polishing, while carpeted floors require daily cleaning and semi-annual dry cleaning.

If an Annex Brands franchisee fails to maintain the required condition and appearance, the franchisor can take action. Annex Brands will provide written notice at least three days in advance, after which they can access the center to arrange necessary cleaning, repairs, remodeling, upgrading, painting, or decorating. They can also replace leasehold improvements, furnishings, fixtures, equipment, displays, signs, or graphics.

The franchisee is responsible for covering all costs associated with these actions within 10 days of receiving an invoice from Annex Brands. Failure to grant access to the center or to reimburse Annex Brands for these expenses constitutes a default under the agreement, potentially leading to enforcement actions. This means that maintaining the center's appearance and condition is not just a suggestion but a contractual obligation with financial and operational consequences for non-compliance.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.