What right does the Annex Brands franchisee have regarding setting prices?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee has the right to set its own prices, except that Franchisee agrees to honor fully all coupons, price-reduction promotions and other promotions/programs as directed by Franchisor.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 Annex Brands Franchise Disclosure Document, franchisees have the right to set their own prices for goods and services offered at their centers. However, this right is conditional. Annex Brands franchisees must honor all coupons, price-reduction promotions, and other promotions or programs as directed by Annex Brands.
This means that while an Annex Brands franchisee can determine the initial pricing strategy for their location, Annex Brands retains control over promotional pricing. This allows Annex Brands to maintain brand consistency and implement marketing strategies across all franchise locations.
For a prospective franchisee, this implies a need to balance independent pricing decisions with adherence to corporate promotions. Failure to comply with mandated promotions could result in a breach of the franchise agreement. It is important to understand the frequency, nature, and potential impact of these promotions on profitability when evaluating the franchise opportunity.