What are the specific obligations of Annex Brands franchisees regarding purchases/leases under the franchisor's specifications, as detailed 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.
What This Means (2025 FDD)
Based on the 2025 FDD, Annex Brands franchisees are obligated to adhere to specific standards and procedures set by the franchisor regarding supplies and materials. Franchisees must use 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 ensures consistency and quality across all franchise locations.
Annex Brands retains the right to modify the list of approved brands and suppliers periodically. Franchisees are responsible for staying informed of these changes and must cease reordering materials or services from any brand or supplier once they are no longer approved. If a franchisee wishes to use a different brand or supplier, they must first seek approval from Annex Brands by submitting sufficient information, specifications, and samples for evaluation. Annex Brands will then notify the franchisee of its decision within a reasonable time.
Annex Brands may also prescribe procedures for submitting requests for approved brands or suppliers and set obligations for approved suppliers. Furthermore, Annex Brands can impose limits on the number of suppliers or brands for any item used or sold by the franchise. These measures allow Annex Brands to maintain control over the quality and consistency of products and services offered under its brand name. The FDD also states that the franchisee acknowledges that the image, appearance, layout, decor, furnishings, equipment, computer systems, cleanliness and efficient operation of the Center is important to Annex Brands and to other System franchisees. Annex Brands will endeavor to maintain high standards of quality and service at all Centers, and the Franchisee agrees to cooperate with Annex Brands by maintaining such high standards in the operation of the Center.