Is a waiver granted by Annex Brands subject to continuing review?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
B. WAIVER OF OBLIGATIONS. Franchisor and Franchisee may by written instrument waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon giving written notice thereof to the other or upon such other effective date stated in the notice of waiver. Any waiver granted by Franchisor will be without prejudice to any other rights Franchisor may have, will be subject to continuing review by Franchisor and may be withdrawn, in Franchisor's sole discretion, effective upon giving Franchisee 30 days' prior written notice of withdrawal.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, any waiver granted by Annex Brands is subject to continuing review. Annex Brands retains the right to review any waiver it grants to a franchisee. This means that even if Annex Brands initially waives a specific obligation or restriction for a franchisee, it can later change its position and enforce the original terms of the franchise agreement.
Annex Brands can withdraw a waiver at its sole discretion. However, Annex Brands must provide the franchisee with 30 days' prior written notice before the withdrawal becomes effective. This advance notice gives the franchisee some time to prepare for the reinstatement of the original obligation or restriction.
This clause provides Annex Brands with flexibility in managing its franchise network and ensuring compliance with its standards. For a prospective franchisee, this means that any waiver obtained should not be considered permanent and could be revoked with 30 days' notice. Franchisees should factor this possibility into their business planning and operations.