What subsection of the Annex Brands franchise agreement outlines the conditions for continuing the franchise beyond the initial 20-year term?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the terms and conditions of this Agreement, Franchisor hereby grants to Franchisee, and Franchisee hereby
accepts, a franchise to operate the Center, whether designated as a standard Center, a flex Center, or an express Center, using only the designated Marks, at a mutually agreed upon location, all as specified in Attachment 3, with the right to use the System, for a term commencing on the execution date of this Agreement and ending on the 20-year anniversary of the execution date of this Agreement, unless the franchise is sooner terminated in accordance the provisions of this Agreement, or unless the franchise is continued beyond such 20-year anniversary in accordance with Subsection 14.D of this Agreement ("Franchise").
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 FDD, Subsection 14.D of the Annex Brands franchise agreement outlines the conditions for continuing the franchise beyond the initial 20-year term. The initial franchise term lasts for 20 years, commencing on the execution date of the agreement.
Subsection 14.A clarifies that a franchisee has the right to renew for an additional 20-year term if they meet certain conditions. These conditions include substantial compliance with the franchise agreement, providing timely written notice of renewal, maintaining the center in compliance with brand standards, executing renewal agreements and releases, and paying an $8,500 renewal fee.
If a franchisee does not wish to renew, they must notify Annex Brands in writing between 6 and 12 months before the 20-year anniversary. Failure to meet renewal terms means the franchise continues until Annex Brands terminates it with 60 days' notice. This ensures that both parties are clear about their intentions regarding the future of the franchise agreement.