What responsibility does an Annex Brands franchisee have when purchasing supplies from other suppliers?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
r 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. If so requested by Franchisor, Franchisee agrees to display, at a prominent location within the Center, a small sign and brochure holder full of brochures provided by Franchisor which inform the public of the opportunity to purchase franchises of Franchisor.
- G. COMPLIANCE WITH LAWS AND GOOD BUSINESS PRACTICES.
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 from suppliers not already approved by the franchisor. The franchisee is required to notify Annex Brands and submit comprehensive information, specifications, and samples for evaluation before using any non-approved brand or supplier. This allows Annex Brands to determine if the proposed brand meets their standards and specifications, or if the supplier meets their criteria. Annex Brands will then notify the franchisee of their decision within a reasonable timeframe.
Annex Brands retains the right to periodically modify the list of approved brands and suppliers. Franchisees are obligated to cease reordering materials or services from any brand or supplier once they receive written notification of its removal from the approved list. Furthermore, Annex Brands may establish procedures for submitting requests for brand or supplier approval and define the obligations that approved suppliers must meet. They can also limit the number of suppliers or brands for any item used or sold at the center.
If a franchisee wishes to use equipment not currently approved by Annex Brands or purchase from a non-approved supplier, they must also notify Annex Brands and provide detailed specifications, photographs, samples, or other requested information. Annex Brands will then assess whether the equipment or supplier meets their standards and notify the franchisee of their decision. Approval 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 ensure that all Annex Brands locations maintain consistent quality and service standards, protecting the brand's reputation and goodwill. For a prospective franchisee, this means that while there may be some flexibility in choosing suppliers, it is subject to Annex Brands's approval process and adherence to their standards. Franchisees should be prepared to justify their choices and provide the necessary documentation for evaluation.