What responsibility does an Annex Brands franchisee have if they purchase from a supplier other than the franchisor?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee desires to use any type, brand, or model of equipment which is not then currently approved by Franchisor, or if Franchisee desires to purchase any equipment from a supplier other than Franchisor, an affiliate of Franchisor or a supplier which is then currently approved by Franchisor for such equipment, Franchisee will notify Franchisor of his, her or their desire to do so and will submit to Franchisor specifications, photographs, samples, and/or other information requested by Franchisor. Franchisor will, within a reasonable time, determine whether the equipment or supplier meets Franchisor's specifications and standards and notify Franchisee whether the Center is authorized to use such equipment in the operation of the Center or to purchase from such supplier. Franchisor may grant its approval subject to certain conditions, including requirements relating to quality and condition of the equipment and its resulting products, the frequency of delivery, standards of service (e.g., prompt attention to complaints), and may grant its approval on a temporary basis, pending a further evaluation of the equipment or supplier by Franchisor. In approving suppliers for the Center, Franchisor may take into consideration such factors as the reliability of the supplier. Franchisor may concentrate purchases with 1 or more suppliers to obtain the lowest prices and/or the best advertising support or other services for any group of businesses franchised or operated by Franchisor and/or its affiliates. Franchisor may periodically prescribe procedures for the submission of requests for approval of equipment and suppliers.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 FDD, an Annex Brands franchisee who desires to purchase equipment from a supplier not currently approved by Annex Brands must first notify Annex Brands of this intention. The franchisee must submit specifications, photographs, samples, and any other information requested by Annex Brands for review.
Annex Brands will then determine if the equipment or supplier meets their standards and will notify the franchisee of their decision within a reasonable time. Annex Brands may approve the equipment or supplier subject to certain conditions, such as requirements relating to the quality and condition of the equipment and its products, the frequency of delivery, and standards of service, including prompt attention to complaints. Approvals may also be temporary, pending further evaluation by Annex Brands.
In evaluating potential suppliers, Annex Brands may consider factors such as the supplier's reliability. Annex Brands also retains the right to concentrate purchases with one or more suppliers to obtain the lowest prices, the best advertising support, or other services for any group of businesses franchised or operated by Annex Brands and its affiliates. Annex Brands may also periodically prescribe procedures for submitting requests for equipment and supplier approvals.