What right does Annex Brands grant to the franchisee regarding the operation of a retail center?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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We grant you the right to operate 1 retail center at a mutually agreed on location designated on Attachment 3 to the franchise agreement. Your marketing and advertising activities related to your retail center, whether taking place within or extending beyond your protected area, must conform to our policies, as specified in our Manuals, in writing or otherwise. The policies apply to Internet and other digital activities such as any approved websites, email marketing programs, social media platforms, online directory listings, and other online networking platforms, as well as to print and other traditional forms of marketing and advertising.
Generally, when you sign a lease for the premises of your retail center, we will determine your protected area according to the following factors: 1) location; 2) population; 3) proximity to similar businesses; 4) number of other businesses providing the same or similar services; 5) demography of the area; 6) growth potential; and 7) market trends. The following standards for each type of retail center applies:
If you operate a standard retail center or flex retail center, the protected area will be the geographic area within a ½-mile radius of the standard or flex retail center.
If you operate an express retail center, the protected area will be the facility in which the retail center is located.
Your protected area may be amended only by mutual written agreement among you, us and any regional licensee for your area.
As noted in Item 1, we acquired Pak Mail Centers of America, Inc. on April 20, 2016. The acquired franchisees may continue to operate businesses similar to our retail centers and Commercial Logistics Centers under the Pak Mail trade names in their existing territories. We acquired substantially all of the franchise assets and programs of EAGLE on October 31, 2014. The acquired franchisees may continue to operate retail centers under the Parcel Plus trade names in their existing territories. We acquired substantially all of the franchise assets and programs of Amailcenter Franchise Corporation ("AFC") in August 2011. The acquired franchisees may continue to operate retail centers under the AIM Mail trade names in their existing territories.
Source: Item 12 — Territory (FDD pages 62–64)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, the franchisee is granted the right to operate one retail center at a location mutually agreed upon and designated in Attachment 3 of the franchise agreement. This right is subject to the franchisee's adherence to the franchise agreement. While franchisees receive a protected area, it's important to note that this is not an exclusive territory.
The protected area size depends on the type of retail center. For standard or flex retail centers, the protected area is the geographic area within a ½-mile radius. For express retail centers, the protected area is limited to the facility in which the retail center is located. Annex Brands retains the right to license other retail centers or establish company-owned centers of the same type outside the franchisee's protected area.
Annex Brands may solicit clients nationwide through its website, and if sales are made to clients within a franchisee's protected area, the franchisee may receive a commission, typically ranging from 10% to 50%. The FDD also states that Annex Brands may offer franchisees customer referrals for a fee, which is less than the price at which Annex Brands sells the business to the customer. However, Annex Brands can offer the referral to another retail center if the franchisee is non-compliant, refuses the referral, or is deemed unable to service it.