Under what condition must an Annex Brands franchisee modify or discontinue the use of copyrighted material?

According to the 2025 FDD, an Annex Brands franchisee must modify or discontinue the use of any copyrighted material if directed to do so by Annex Brands. This requirement is part of the broader agreement that all provisions in Item 13, which covers trademarks and their protection, also apply to copyrighted materials used by franchisees. This ensures that Annex Brands maintains control over its copyrighted materials and can respond to any legal or business concerns related to their use.

This provision means that if Annex Brands identifies a potential issue with the use of certain copyrighted materials, such as a risk of infringement or a change in business strategy, it can instruct its franchisees to stop using or modify those materials. The franchisee is obligated to comply with these instructions. This protects Annex Brands from potential legal liabilities and ensures consistent brand management across all franchise locations.

For a prospective Annex Brands franchisee, this highlights the importance of adhering to the franchisor's guidelines and directives regarding copyrighted materials. While franchisees are granted the right to use these materials for operating and promoting their retail center, this right is contingent upon compliance with Annex Brands' instructions. Failure to comply could result in a breach of the franchise agreement and potential penalties. It is also important to note that Annex Brands retains the right to modify or substitute any mark in its sole discretion, and franchisees must comply with any such modification or substitution at their own expense.