What responsibility does an Annex Brands franchisee have when purchasing from other suppliers?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
MATERIALS. Franchisee agrees that the Center will use forms, packaging materials, print materials, labels and other supplies, and use or offer for sale other services that conform to Franchisor's specifications and quality standards and/or are purchased from suppliers approved periodically by Franchisor (which may include Franchisor and/or any of its affiliates). Franchisor may periodically modify the list of approved brands and/or suppliers, and Franchisee will not, after receipt in writing of such modification, reorder any materials or services from any brand or supplier which is no longer approved. If Franchisee proposes to prepare or offer for sale any other services or use any supplies of any brand and/or supplier which is not then approved, he, she or they will first notify Franchisor and submit sufficient information, specifications, and samples concerning such brand and/or supplier for a determination by Franchisor whether such brand complies with Franchisor's specifications and standards and/or such supplier meets Franchisor's approved supplier criteria. Franchisor will, within a reasonable time, notify Franchisee whether such proposed brand and/or supplier is approved. Franchisor may periodically prescribe procedures for the submission of requests for approved brands or suppliers and obligations which approved suppliers must assume. Franchisor may impose limits on the number of suppliers and/or brands for any item used or sold by the Center.
- F. SPECIFICATIONS. STANDARDS. PROCEDURES. AND acknowledges that the image, appearance, layout, decor, furnishings, equipment, computer systems, cleanliness and efficient operation of the Center is important to Franchisor and to other System franchisees. Franchisor will endeavor to maintain high standards of quality and service at all Centers. To this end, Franchisee agrees to cooperate with Franchisor by maintaining such high standards in the operation of the Center. Accordingly, Franchisee agrees not to use the Center for any purpose other than the operation of the Center in compliance with this Agreement without Franchisor's prior written consent. Franchisee further agrees to comply with all mandatory specifications, standards and operating procedures relating to the operation of Centers, including: 1) an adoption and maintenance of Franchisor's trade dress (i.e., image, appearance, layout, design and decor) of the Center; 2) notices, signs, displays, graphics, marketing and advertising materials, business forms, print and digital communications, and other materials; 3) cleaning, repair, refurnishing, and remodeling; 4) type, brand, appearance, and functioning of equipment, computer systems, products, fixtures, and furnishings; 5) appearance and demeanor of personnel of the Center (including the wearing of name tags and logo apparel as Franchisor may periodically specify); 6) marketing methods or programs, and digital or online communications; 7) use of the Marks and use of and protection of Confidential Information; and 8) preparation and retention of records. Franchisee must be a member of Franchisor's Intranet network linking Franchisees with each other and Franchisor's Corporate Office.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, franchisees must adhere to specific guidelines when sourcing supplies and equipment. Generally, franchisees are required to purchase forms, packaging, print materials, labels, and other supplies from suppliers approved by Annex Brands. This includes ensuring that all materials and services conform to Annex Brands's specifications and quality standards. Annex Brands retains the right to modify the list of approved brands and suppliers, and franchisees are obligated to comply with these changes by ceasing orders from any delisted supplier upon written notification.
If an Annex Brands franchisee wishes to use a non-approved supplier or brand, they must first seek approval from Annex Brands. This involves submitting comprehensive information, specifications, and samples for evaluation. Annex Brands will then determine whether the proposed supplier or brand meets their standards and criteria, notifying the franchisee of their decision within a reasonable timeframe. Annex Brands may also establish procedures for submitting requests for approved brands or suppliers, including obligations that these suppliers must meet. Furthermore, Annex Brands has the authority to limit the number of suppliers or brands for any item used or sold at the center.
Annex Brands also maintains control over equipment purchases. If a franchisee intends to use equipment not currently approved or purchase from a non-approved supplier, they must notify Annex Brands and provide detailed specifications, photographs, and samples. Annex Brands will then assess whether the equipment or supplier meets their standards and inform the franchisee of their decision. Approvals may be conditional, including requirements related to quality, delivery frequency, and service standards. Annex Brands may also grant temporary approvals pending further evaluation. In assessing suppliers, Annex Brands may consider factors such as reliability and may concentrate purchases with specific suppliers to secure the best prices, advertising support, or other services for the franchise system.
These stipulations enable Annex Brands to maintain consistency and quality across all franchise locations, protecting the brand's reputation and ensuring a uniform customer experience. For a prospective franchisee, this means a limited choice of suppliers and a requirement to seek approval for any deviations, which could potentially impact costs and operational flexibility. It is important for potential franchisees to understand these requirements and discuss any concerns with Annex Brands before entering into a franchise agreement.