Under what conditions can Annex Brands access a franchisee's center for maintenance purposes?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee does not maintain the condition and appearance of the Center as is required by this Agreement, Franchisee will give Franchisor access to the Center on not less than 3 days' prior written notice from Franchisor, so that Franchisor may: 1) arrange for the necessary cleaning, repair, remodeling, upgrading, painting or decorating; and 2) replace the necessary leasehold improvements, furnishings, fixtures, equipment, displays, signs, or graphics. Franchisee must pay the entire cost thereof within 10 days of receipt of an invoice from Franchisor for the services or purchases. Franchisee's failure to give Franchisor access to the Center, or to reimburse Franchisor in accordance with this Subsection 9.A, is an act subject to the default and enforcement provisions of this Agreement.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 FDD, Annex Brands can access a franchisee's center for maintenance if the franchisee fails to maintain the condition and appearance of the center as required by the franchise agreement. Prior to accessing the center, Annex Brands must provide the franchisee with at least three days' prior written notice.
If Annex Brands accesses the center, it may arrange for necessary cleaning, repairs, remodeling, upgrading, painting, or decorating. They can also replace necessary leasehold improvements, furnishings, fixtures, equipment, displays, signs, or graphics. The franchisee is responsible for paying the entire cost of these services and purchases within 10 days of receiving an invoice from Annex Brands.
The franchise agreement stipulates that the franchisee's failure to provide access to the center or to reimburse Annex Brands for the maintenance costs constitutes a breach of the agreement, potentially leading to default and enforcement actions. This clause ensures that Annex Brands can maintain the uniformity and standards across all its franchised locations, protecting the brand's image and reputation.
This arrangement is fairly common in franchising, as franchisors often have a vested interest in ensuring that all locations meet certain standards to maintain brand consistency and customer experience. However, it's crucial for prospective Annex Brands franchisees to understand their obligations regarding center maintenance and the potential financial implications if they fail to meet these standards.