factual

Under what condition can an Annex Brands franchisee purchase supplies from other suppliers?

Annex_Brands Franchise · 2025 FDD

Answer 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 supplies from other suppliers if the franchisee proposes to use supplies from a brand or supplier not already approved by Annex Brands. In this case, the franchisee must first notify Annex Brands and submit sufficient information, specifications, and samples concerning the brand or supplier for Annex Brands to determine whether they comply with the franchisor's specifications and standards or meet their approved supplier 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, including 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 granted on a temporary basis, pending further evaluation by Annex Brands. In approving suppliers, Annex Brands may consider factors such as the reliability of the supplier and may concentrate purchases with one or more suppliers to obtain the lowest prices, the best advertising support, or other services.

If a franchisee desires to use any type, brand, or model of equipment not currently approved by Annex Brands, or if the franchisee wants to purchase equipment from a supplier other than Annex Brands, an affiliate, or an approved supplier, the franchisee must notify Annex Brands. They must submit specifications, photographs, samples, and other information requested by Annex Brands. Annex Brands will then determine whether the equipment or supplier meets their standards and notify the franchisee of their decision.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.