What restrictions on suppliers does Annex Brands impose as described in Item 8, and how do these restrictions relate to the franchisee's obligations in Item 9?
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;
What This Means (2025 FDD)
According to the 2025 FDD, Annex Brands franchisees are required to adhere to specific guidelines regarding the sources of products and services they use in their centers. Annex Brands mandates that franchisees use forms, packaging, print materials, labels, and other supplies that meet the franchisor's quality standards and specifications. These items must be purchased from suppliers approved by Annex Brands, which may include Annex Brands itself or its affiliates. This restriction ensures uniformity and quality control across all franchised locations.
Annex Brands retains the right to modify the list of approved brands and suppliers periodically. Franchisees are obligated to cease reordering materials or services from any brand or supplier once they receive written notification that the supplier is no longer approved. If a franchisee wishes to use a new supplier or offer new services, they must first seek approval from Annex Brands by submitting detailed information and samples for evaluation. Annex Brands will then determine whether the proposed supplier or brand meets their standards and criteria.
These restrictions are closely tied to the franchisee's obligations outlined in Subsection 9.I and 9.J of the franchise agreement, particularly concerning insurance programs and international ocean programs. Franchisees must participate in any group-wide insurance programs sponsored by Annex Brands and the international ocean program. Additionally, franchisees must adhere to appearance standards, including wearing name badges and logo attire purchased from approved suppliers. These requirements ensure that franchisees maintain the standards and image of the Annex Brands system, contributing to overall brand consistency and customer experience.