Does Annex Brands have the right to use a franchisee's likeness in advertising materials?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
You hereby grant us a worldwide, perpetual license, without charge or payment of a royalty, to reproduce, distribute, transmit, create derivative works of, publicly display and publicly perform all materials and information you submit to us for posting in your web pages and website, and all materials and information you submit to our Intranet or newsgroups described in this Agreement, by all means and in any media now known or hereafter developed, including but not limited to the right to use such materials and information that we deem appropriate on similar web pages or websites of our other franchisees; and use your name and any likeness of you that you submit to us for posting in your web pages or website, or that you submit to us in connection with all advertising, marketing and promotional materials related to our website or your web pages or website; and sublicense and to authorize 3rd parties to do any, all or some of the things that we are permitted to do under this Agreement.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees grant Annex Brands a worldwide, perpetual license to use their likeness in advertising, marketing, and promotional materials related to the Annex Brands website or the franchisee's web pages or website. This license is granted without charge or royalty payment. Annex Brands also has the right to sublicense and authorize third parties to use the franchisee's likeness.
This means that by signing the franchise agreement, a franchisee gives Annex Brands the ongoing right to use their image in various advertising and promotional contexts. This includes reproducing, distributing, transmitting, displaying, and creating derivative works from the franchisee's likeness. The franchisee cannot revoke this license, and they will not receive any direct compensation for these uses.
This clause is fairly broad, giving Annex Brands significant latitude in how they use a franchisee's likeness. Franchisees should consider the implications of granting such a license, especially if they have concerns about how their image might be used in the future. While the clause focuses on website-related materials, the general language regarding "all advertising, marketing and promotional materials" could potentially extend to other forms of advertising as well.
It is important for prospective franchisees to carefully review this section of the franchise agreement and understand the full scope of the rights they are granting to Annex Brands. If there are concerns, franchisees should seek legal counsel to discuss potential limitations or clarifications to this clause before signing the agreement.