Under what conditions may Annex Brands require a franchisee to participate in system-wide transportation programs?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee.
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- Franchisor may require Franchisee to participate in any system-wide transportation programs, which may include an international ocean program, in which Franchisor internally books international ocean shipments with the shipping lines, provides appropriate documentation, collects payments from customers, pays shipping lines, and completes transactions with Centers. Franchisee agrees to execute the then-current documents that may be necessary to participate in these system-wide programs, such as Attachment 7 for the international ocean program. Franchisor may charge a fee to the extent that it supplies or administers any such program.
- K. CO-BRANDING. Notwithstanding other provisions in this Agreement, Franchisor reserves the right to establish relationships, partnerships, joint ventures, and other strategic alliances (collectively, "programs") with suppliers, retailers, service providers, and other franchise or distribution companies (collectively, "companies"), in which the products or services of those companies will be co-marketed with Franchisor's products and services, which may entail the promotion of the "brands" of those companies' products or services and the license of those companies' marks. If Franchisor establishes any programs of this type, Franchisee must participate in accordance with policies and requirements that Franchisor establishes, including the execution of separate licensing and distribution agreements in forms that Franchisor specifies, and the payment of reasonable fees related to the programs that may be in addition to royalty fees and marketing fees.
10. MARKETING/ADVERTISING AND PROMOTION
A. BY FRANCHISOR. Recognizing the value of marketing to the goodwill and public image of Centers, Franchisor maintains, and administers a marketing fund (the "Fund") for such marketing as Franchisor, in its sole discretion, deems necessary or appropriate.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 FDD, Annex Brands may require franchisees to participate in system-wide transportation programs. These programs may include an international ocean program where Annex Brands handles international ocean shipments, documentation, payments, and transactions with the Centers. Franchisees are required to execute necessary documents to participate in these programs, such as Attachment 7 for the international ocean program. Annex Brands may charge a fee for supplying or administering such programs.
Annex Brands may also require franchisees to participate in sales fulfillment or other programs related to strategic marketing alliances it forms with other companies, including affiliates. These programs may involve services connected with online estimating, purchasing, shipping, or printing services employed by web-based sites or other platforms. Franchisees are required to service each order in the time, manner, price, and terms offered to the consumer through the program. Annex Brands or the program supplier, which may be an affiliate, may require franchisees to pay a reasonable fee for business generated under such programs.
Additionally, Annex Brands may condition a franchisee's participation in any program or receipt of system benefits on the franchisee's compliance with the Franchise Agreement and all other agreements between the franchisee and Annex Brands or its affiliates. This means that if a franchisee is not in good standing with Annex Brands, they may be excluded from participating in these programs. Franchisees should ensure they understand the terms and conditions of these programs and their obligations to remain compliant with all agreements to avoid any disruptions in their participation or access to system benefits.