Within how many days after signing the agreement must the Annex Brands Center be operational?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
CENTER OPENING. Franchisee agrees not to open the Center for business until: 1) all of Franchisee's obligations under Subsections 3.C and 3.D of this Agreement have been fulfilled; 2) Franchisor determines that the Center has been constructed, decorated, furnished, equipped and stocked with materials and supplied in accordance with approved plans and specifications; 3) pre-opening training of Franchisee and personnel of the Center has been completed to Franchisor's satisfaction; 4) the initial franchise fee and all other amounts then due to Franchisor and/or its affiliates have been paid; and 5) Franchisor has been furnished with copies of all insurance policies required in this Agreement, or such other evidence of insurance coverage and payment of premiums as Franchisor requests. Franchisee agrees to comply with these conditions and to open the Center for business within 365 days after execution of this Agreement. Franchisee further agrees to open the Center for business under this Agreement within 5 days after Franchisor gives written notice to Franchisee stating that the Center is ready for opening. If Franchisee fails to open the Center within 365 days after execution of this Agreement, except in the event of delays caused by Franchisor and/or delays caused by the Premises Owner (as defined in Subsection 3.B of this Agreement), Franchisor may terminate the Franchise at any time thereafter (see Subsection 8.A of this Agreement).
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, a franchisee must open their center for business within 365 days after the execution of the Franchise Agreement. However, there is also a requirement to open the center within 5 days after Annex Brands provides written notice that the center is ready for opening.
Failure to open the Annex Brands center within the 365-day timeframe can result in the termination of the franchise agreement, unless the delays are caused by Annex Brands or the premises owner. This clause underscores the importance of adhering to the stipulated timelines for site selection, construction, and preparation to avoid potential penalties.
These requirements ensure that franchisees promptly establish their businesses and begin operations, contributing to the overall growth and success of the Annex Brands franchise system. Franchisees should carefully review the terms of the agreement and plan accordingly to meet these deadlines.