What trade dress items may Annex Brands require franchisees to purchase directly from them?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Certain trade dress fixtures, equipment, supplies, other merchandise and services may be required to be purchased directly from Franchisor and/or its affiliates, or may be permitted to be purchased from other suppliers provided Franchisor is held harmless by Franchisee regarding any products liability cause of action. On items or services sold by Franchisor and/or its affiliates, Franchisor anticipates a reasonable profit to cover overhead expenses.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees may be required to purchase certain trade dress fixtures, equipment, supplies, other merchandise, and services directly from Annex Brands and/or its affiliates. Alternatively, franchisees may be permitted to purchase these items from other suppliers, provided that the franchisee holds Annex Brands harmless regarding any products liability cause of action. Annex Brands anticipates a reasonable profit on items or services sold by them or their affiliates to cover overhead expenses.
Annex Brands also mandates that franchisees adopt and maintain the franchisor's trade dress, which includes the image, appearance, layout, design, and decor of the center. This extends to notices, signs, displays, graphics, marketing and advertising materials, business forms, print and digital communications, and other materials. Franchisees must also adhere to standards for cleaning, repair, refurnishing, and remodeling, as well as the type, brand, appearance, and functioning of equipment, computer systems, products, fixtures, and furnishings.
Furthermore, if converting an existing business, franchisees must purchase all required trade dress fixtures, furnishings, and equipment from suppliers approved or designated by Annex Brands, which may include Annex Brands and/or its affiliates. Franchisees are required to pay a deposit ranging from $10,500 to $15,000 for a new standard, flex, or express center, or $2,000 to $15,000 for a conversion center, to cover the cost of shipping fixtures and equipment. Additionally, franchisees must purchase a retail fixtures and equipment package, including all trade dress fixtures, mailboxes, package lockers, and flooring, for a non-refundable amount that varies based on the type and amount of fixtures and equipment needed.