What is the protected area radius for a standard or flex Annex Brands retail center?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
If you operate a standard retail center or flex retail center, the protected area will be the geographic area within a ½-mile radius of the standard or flex retail center.
If you operate an express retail center, the protected area will be the facility in which the retail center is located.
Your protected area may be amended only by mutual written agreement among you, us and any regional licensee for your area.
Source: Item 12 — Territory (FDD pages 62–64)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees operating a standard or flex retail center will receive a protected area that extends geographically within a ½-mile radius of their location. This means that, provided the franchisee remains in compliance with the franchise agreement, Annex Brands will not license another retail center or establish a company-owned retail center of the same type within this half-mile radius. However, this protected area is not exclusive, as a Commercial Logistics Center, or a residential and commercial moving business operated under another Mark, may be located within the franchisee's protected area.
Annex Brands determines the specifics of the protected area based on factors such as location, population, proximity to similar businesses, the number of other businesses providing similar services, the area's demographics, growth potential, and market trends. This suggests that the protected area is not a fixed circle but rather a customized zone that takes into account local market conditions. The FDD also states that the protected area may be amended only by mutual written agreement among the franchisee, Annex Brands, and any regional licensee for the area.
It is important to note that franchisees do not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Annex Brands. Additionally, Annex Brands may acquire other franchise systems that operate similar businesses under different trademarks, and these acquired franchisees may continue to operate within the new franchisee's protected area. This means that while a franchisee has some protection against new Annex Brands locations, they may still face competition from existing businesses acquired by Annex Brands.