Under what condition can an Annex Brands franchisee purchase items from other suppliers?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee proposes to prepare or offer for sale any other services or use any supplies of any brand and/or supplier which is not then approved, he, she or they will first notify Franchisor and submit sufficient information, specifications, and samples concerning such brand and/or supplier for a determination by Franchisor whether such brand complies with Franchisor's specifications and standards and/or such supplier meets Franchisor's approved supplier criteria.
Franchisor will, within a reasonable time, notify Franchisee whether such proposed brand and/or supplier is approved.
Franchisor may periodically prescribe procedures for the submission of requests for approved brands or suppliers and obligations which approved suppliers must assume.
Franchisor may impose limits on the number of suppliers and/or brands for any item used or sold by the Center.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 FDD, an Annex Brands franchisee can purchase items from other suppliers if they meet certain conditions and receive approval from Annex Brands. Specifically, if a franchisee wants to use a brand or supplier not already approved by Annex Brands, they must first notify Annex Brands and submit sufficient information, specifications, and samples for Annex Brands to determine if the brand complies with their standards or if the supplier meets their criteria. Annex Brands will then notify the franchisee within a reasonable time whether the proposed brand or supplier is approved.
Annex Brands may also grant approval subject to certain conditions, such as requirements relating to the quality and condition of the equipment and its resulting products, the frequency of delivery, and standards of service. Approval may also be temporary, pending further evaluation by Annex Brands. Annex Brands may consider factors like the reliability of the supplier when approving them.
These stipulations allow Annex Brands to maintain quality control and uniformity across all franchise locations, which is a common practice in franchising. While franchisees have the option to propose alternative suppliers, Annex Brands retains the right to make the final decision, ensuring that all products and services meet their established standards. This process protects the brand's reputation and ensures a consistent customer experience across all locations.