Can Annex Brands withdraw its consent for a franchisee's website?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
o the Internet. You may not maintain another website without our prior written consent. (The terms "Franchisor's prior written consent", and "our prior written consent", as used in the franchise agreement, and its attachments, and this Agreement, mean consent that is given by Franchisor based on then-current circumstances, but that may be
withdrawn by Franchisor, if Franchisor later determines in its sole discretion that circumstances have changed, effective upon giving Franchisee 30 days' prior written notice of withdrawal.)
- (a) Standard Web Pages. The initial fee for creation and posting of standard web pages is currently included in your technology services fee, but we reserve the right to change this in the future. We will design the content of standard web pages.
- (b) Customized Standard Web Pages or Website. If we offer customization services, you may request us to customize portions of your standard web pages or create a customized website for you. We will not commence any design or programming work for you that will entail additional charges without your prior written approval. Once you agree, we will charge you at our then-current rate for design or programming services, and we may charge you an annual fee for maintaining a customized website for you. We will design the layout, including but not limited to determination of content, number of pages, consideration of alternate pages for graphics or text, and the overall navigation; create the programming code for display on the Internet including but not limited to the encoding of images, the creation of hyperlinking of both text and images, and the creation of email hyperlinking; and test the programming code.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, Annex Brands can withdraw its consent for a franchisee's website under certain conditions. Specifically, the franchisor's prior written consent, required for a franchisee to maintain a website, can be withdrawn if Annex Brands later determines that circumstances have changed. This withdrawal becomes effective 30 days after the franchisee receives written notice. This applies to the use of Marks in website addresses or domain names.
This condition means that while a franchisee may initially receive approval to operate a website, Annex Brands retains the right to revoke that approval if they deem it necessary due to changing circumstances. These circumstances are not defined in the FDD, leaving the decision entirely to Annex Brands' discretion. The franchisee must then cease operating the website 30 days after receiving notice.
This clause gives Annex Brands significant control over the franchisee's online presence. A prospective franchisee should consider the potential impact of losing their website on their business. It would be prudent to discuss with Annex Brands what specific circumstances might lead to a withdrawal of consent and whether there are any appeal or review processes in place to protect the franchisee's investment in their website and online marketing efforts.
Furthermore, the FDD states that Annex Brands may modify the format or content of a franchisee's web pages or website periodically without prior notice. This adds another layer of control, allowing Annex Brands to make changes to the franchisee's online presence as they see fit, potentially impacting the franchisee's branding and marketing strategies.