Can Annex Brands specify or change the content of notices and acknowledgements related to employee status?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
- During the term of the Franchise, Franchisee will hold itself out to its 3) prospective employees, and to its employees, as an independent contractor operating the Center pursuant to rights granted by Franchisor, but not jointly with Franchisor.
Franchisee will take any reasonable action that Franchisor considers necessary to that end, including: (i) stating conspicuously on each employment application that the prospective employee is applying to be Franchisee's employee and not an employee of Franchisor; (ii) stating Franchisee's entire business name, rather than just using Franchisor's brand name and/or logo, on Franchisee's payroll checks and/or payroll-related communications to employees; and (iii) requiring employees to sign acknowledgements that they are not employees of Franchisor, even though they are selling products and services identified by Franchisor's brand name and/or logo, are receiving payroll checks and other communications that contain Franchisor's brand name and/or logo, may have applied for jobs through Franchisor's website, or may communicate with or receive non-mandatory feedback, coaching or recommendations from representatives of Franchisor in emails or other electronic or written communications, or during telephone calls, meetings or inspections.
Franchisor reserves the right to specify and change the content and form of these statements and acknowledgements.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, Annex Brands retains the right to specify and modify the content and format of statements and acknowledgements related to franchisee employees.
This means that during the franchise term, franchisees must present themselves as independent contractors to both prospective and current employees, operating under the rights granted by Annex Brands, and not jointly with Annex Brands. Franchisees are obligated to take actions deemed necessary by Annex Brands to reinforce this status.
These actions include stating on employment applications that applicants are applying to be the franchisee's employee, using the franchisee's full business name on payroll checks, and requiring employees to sign acknowledgements confirming they are not employees of Annex Brands. This is the case even if they are selling branded products/services, receiving payroll containing the Annex Brands name/logo, applying through the Annex Brands website, or communicating with Annex Brands representatives.
This provision allows Annex Brands to maintain a clear distinction between its employees and those of its franchisees, which can have significant implications for liability and legal compliance. Franchisees must stay informed of any changes Annex Brands makes to these required statements and acknowledgements to ensure they remain compliant.