Can Annex Brands terminate or suspend a franchisee's access to the Intranet without terminating the entire agreement?

According to the 2025 Annex Brands Franchise Disclosure Document, Annex Brands retains the right to terminate or suspend a franchisee's access to its Intranet, newsgroups, bulletin boards, and libraries without terminating the entire franchise agreement. This Intranet is intended to provide support and facilitate electronic communication among franchisees.

This provision grants Annex Brands significant control over a franchisee's access to important communication and support resources. If a franchisee violates the Internet Code of Conduct or other policies, Annex Brands can restrict their access to the Intranet without resorting to full termination of the franchise agreement.

For a prospective franchisee, this means that maintaining compliance with Annex Brands's Internet Code of Conduct is crucial. Failure to adhere to these standards could result in the loss of access to the Intranet, which Annex Brands intends to use to provide support and facilitate communication. While this is less severe than a full termination, it could still hinder a franchisee's ability to effectively manage their business and stay informed about important updates from Annex Brands.

This type of provision is not uncommon in franchise agreements, as franchisors often need to maintain control over communication channels and ensure brand consistency. However, franchisees should carefully review the Internet Code of Conduct and other related policies to understand the specific grounds for access suspension or termination.