What representation must be made by individuals executing the Annex Brands franchise agreement regarding their involvement in illegal activities?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
OF INFORMATION
| I/we, Brands, Inc. ("Franchisor"), in its sole discretion and as it deems necessary, to investigate Franchisee's background. Franchisee understands that Franchisor may use an outside firm(s) to assist it in checking such information, and Franchisee specifically authorizes such an investigation by information services and outside entities of the Franchisor's choice. Franchisee understands that Franchisee may withhold permission and that in such a case, no investigation will be done, however, the execution of the Franchise Agreement by Franchisor may not be processed. | ("Franchisee"), hereby authorize Annex |
|---|---|
| Franchisee hereby authorizes a representative of the Franchisor bearing this release to obtain any | |
| information from credit reporting agencies, employers, individuals, schools, residences or criminal | |
| justice agencies relating to Franchisee's activities, in Franchisor's sole discretion and as Franchisor | |
| deems necessary. This information may include, but is not limited to, academic, achievement, | |
| arrest, attendance, conviction, credit, disciplinary, performance, personal history and residential | |
| records. Franchisee hereby directs you to release such information on request of the bearer. | |
| Franchisee hereby releases and holds harmless any individual, including but not limited to record | |
| custodians, from any and all liability, whether from negligence or violation or any other applicable | |
| legal standard that may potentially result from the release and/or use of such information. |
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
Based on the 2025 Annex Brands Franchise Disclosure Document, individuals executing the franchise agreement authorize Annex Brands to investigate their background. This authorization allows Annex Brands to obtain information from various sources, including credit reporting agencies, employers, schools, and criminal justice agencies, relating to the franchisee's activities. The information that Annex Brands may seek includes arrest records and conviction records.
Annex Brands may use outside firms to assist in checking this information. Franchisees can withhold permission for this investigation, but Annex Brands may choose not to proceed with the franchise agreement in such cases. The franchisee also releases and holds harmless any individual or record custodian from any liability resulting from the release or use of the information obtained during the background check.
This process is designed to help Annex Brands assess the suitability of potential franchisees and protect the integrity of the Annex Brands brand. Franchisees should be aware that their background will be scrutinized and that any adverse findings could impact their ability to obtain or maintain a franchise.