What are the specific obligations of Annex Brands franchisees regarding purchases/leases from the franchisor, as detailed in Item 9?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
What This Means (2025 FDD)
According to the 2025 Annex Brands Franchise Disclosure Document, franchisees are obligated to use specific forms, packaging, print materials, labels, and other supplies that conform to Annex Brands' specifications and quality standards. These items must be purchased from suppliers approved by Annex Brands, which may include Annex Brands itself or its affiliates. This requirement ensures uniformity and quality control across all franchise locations.
Annex Brands retains the right to modify the list of approved brands and suppliers periodically. Franchisees are prohibited from reordering materials or services from any brand or supplier once they receive written notification that the brand or supplier is no longer approved. This allows Annex Brands to maintain standards and adapt to changing market conditions.
If a franchisee wishes to use supplies or offer services from a brand or supplier not currently approved, they must first notify Annex Brands and submit detailed information, specifications, and samples for evaluation. Annex Brands will then determine whether the proposed brand complies with their standards or if the supplier meets their criteria. Annex Brands will notify the franchisee of their decision within a reasonable time. Annex Brands may also establish procedures for submitting requests for approved brands or suppliers and set obligations for approved suppliers. They can also limit the number of suppliers or brands for any item used or sold by the center. These stipulations enable Annex Brands to control quality and consistency while allowing franchisees to propose alternatives under specific conditions.