Under the Annex Brands Franchise Agreement, which state's laws govern the agreement?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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ILLINOIS STATE RIDER TO FRANCHISE AGREEMENT
Illinois law governs the Franchise Agreement.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in the Franchise Agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, the Franchise Agreement may provide for arbitration to take place outside of Illinois.
Your rights upon Termination and Non-Renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
The Franchise Agreement and any document signed in connection with the franchise are supplemented with the following language:
Name/Title: Name/Title: ANNEX BRANDS, INC. Name/Title:
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MINNESOTA STATE RIDER TO FRANCHISE AGREEMENT
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit Franchisor from requiring arbitration to be conducted outside Minnesota.
Nothing in the disclosure document or the Franchise Agreement can abrogate or reduce any of Franchisee's rights as provided for in the Minnesota Franchises Act, Minnesota Statutes, Chapter 80C, or Franchisee's rights to any procedure, forum or remedies provided for by the laws of the jurisdiction. The period of limitation for claims under the Minnesota Franchises Act is 3 years after the cause of action accrues.
Regarding the releases referenced in Subsections 8.A.3.a, 8.A.3.b, 8.A.3.c.i, 13.C.5, 14.A.4, and 14.C of the Franchise Agreement, the releases will exclude any and all claims that may arise under the Minnesota Franchises Act, if that las applies to Franchisee or its owners.
Regarding Section 14 of the Franchise Agreement and renewal, Franchisor will comply with Minn. Stat. Sec. 80c.14, subds, 3, 4 and 5, which require, except in certain specified cases, that Franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for nonrenewal of a franchise.
Regarding Section 15 of the Franchise Agreement and termination, Franchisor will comply with Minn. Stat. Sec. 80C.14, subds, 3, 4 and 5, which require, except in certain specified cases, that Franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for nonrenewal of a franchise.
Regarding Subsections 16.D and 17.D of the Franchise Agreement and injunctive relief, Franchisor will not be automatically entitled to the entry of injunctive relief against Franchisee, but Franchisor will be entitled to seek injunctive relief.
The Franchise Agreement and any document signed in connection with the franchise are supplemented with the following language:
Name/Title: Name/Title: ANNEX BRANDS, INC. Name/Title:
NORTH DAKOTA STATE RIDER TO FRANCHISE AGREEMENT
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- Precedence and Defined Terms. This Rider is an integral part of, and is incorporated into, the Franchise Agreement.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 Annex Brands Franchise Disclosure Document, the Illinois State Rider to the Franchise Agreement specifies that Illinois law governs the Franchise Agreement. However, this is only applicable to franchisees operating in Illinois.
For franchisees in Minnesota, the Minnesota State Rider to Franchise Agreement indicates that nothing in the disclosure document or the Franchise Agreement can reduce any of the franchisee's rights as provided for in the Minnesota Franchises Act. The period of limitation for claims under the Minnesota Franchises Act is 3 years after the cause of action accrues.
For franchisees in North Dakota, the North Dakota State Rider to Franchise Agreement states that the rider supersedes any inconsistent or conflicting provisions of the Franchise Agreement. Additionally, any release required to be signed in connection with a refund of the initial franchise fee will not apply to any claims arising under the North Dakota Franchise Investment Law.
For franchisees in Washington, the Washington State Rider to Franchise Agreement indicates that in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act will prevail. RCW 19.100.180 may supersede the Franchise Agreement in areas of termination and renewal.