Anago 2025 Franchise FAQ - FDD Ninja

Question 1

What conditions must an Anago franchisee meet to obtain a Successor Anago Unit Franchise Agreement?

Accepted Answer

- (a) You are granted unlimited options to obtain a Successor Anago Unit Franchise Agreement for Terms of 5 years each provided the following conditions are met at the time the option is exercised and immediately before the beginning of the Succeeding Term, unless another time is specified below:
  - (i) You must give Us written notice of Your intention to exercise the option by submitting Your application at least 9 months but not more than 12 months before the end of the Term;
  - (ii) You cannot be in default of any provision of this Agreement or any other agreement between You and Us or Our Affiliates;
  - (iii) You, within 30 days before the end of the Term, must sign and deliver to Us a Successor Anago Unit Franchise Agreement that may materially differ from this Agreement;
    - (iv) You must comply with all other requirements We impose under the

Successor Anago Unit Franchise Agreement upon its signing, except that there is no new Initial Fee or renewal fee; and

- (v) You must sign a general release of all claims against Us and Our Affiliates, and our and their respective officers, directors, shareholders, agents and employees except for liabilities that We may not require a release from under applicable state law.
- (b) If You have not met all of the conditions stated in Subsection 16.2(a), We may elect not to enter into a Successor Anago Unit Franchise Agreement. You may, within 5 days of receipt of notice from Us that We have elected not to enter into a Successor Anago Unit Franchise Agreement, submit a notice to us indicating that you intend to sell your Unit Franchise. Following Our receipt of such notice, you will have at least 180 days (if necessary, we will extend the Term of this Agreement in order to provide you at least 180 days to sell Your Unit Franchise, unless We have grounds to otherwise terminate this Agreement) to sell Your Unit Franchise, subject to Our right of first refusal and our right to approve of any transferee. This transfer must be in compliance with the provisions of Subsection 10.2(e) and all the other applicable provisions of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 2

What are the conditions that must be met to obtain a Successor Anago Unit Franchise Agreement with Anago?

Accepted Answer

- (a) You are granted unlimited options to obtain a Successor Anago Unit Franchise Agreement for Terms of 5 years each provided the following conditions are met at the time the option is exercised and immediately before the beginning of the Succeeding Term, unless another time is specified below:
  - (i) You must give Us written notice of Your intention to exercise the option by submitting Your application at least 9 months but not more than 12 months before the end of the Term;
  - (ii) You cannot be in default of any provision of this Agreement or any other agreement between You and Us or Our Affiliates;
  - (iii) You, within 30 days before the end of the Term, must sign and deliver to Us a Successor Anago Unit Franchise Agreement that may materially differ from this Agreement;
    - (iv) You must comply with all other requirements We impose under the

Successor Anago Unit Franchise Agreement upon its signing, except that there is no new Initial Fee or renewal fee; and

- (v) You must sign a general release of all claims against Us and Our Affiliates, and our and their respective officers, directors, shareholders, agents and employees except for liabilities that We may not require a release from under applicable state law.
- (b) If You have not met all of the conditions stated in Subsection 16.2(a), We may elect not to enter into a Successor Anago Unit Franchise Agreement. You may, within 5 days of receipt of notice from Us that We have elected not to enter into a Successor Anago Unit Franchise Agreement, submit a notice to us indicating that you intend to sell your Unit Franchise. Following Our receipt of such notice, you will have at least 180 days (if necessary, we will extend the Term of this Agreement in order to provide you at least 180 days to sell Your Unit Franchise, unless We have grounds to otherwise terminate this Agreement) to sell Your Unit Franchise, subject to Our right of first refusal and our right to approve of any transferee. This transfer must be in compliance with the provisions of Subsection 10.2(e) and all the other applicable provisions of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 3

What is the estimated total initial investment range for an Anago franchise?

Accepted Answer

| Type of Expense1 | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Initial Fee / Subfranchise Fee2 | $98,000 | Lump Sum | Upon signing the Subfranchise Rights Agreement | Us |
| Legal and | $5,000 to | As arranged | As incurred | Attorneys and |
| Accounting3 | $15,000 |  |  | Accountants |
| Type of Expense1 | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
| Marketing and | $50,000 to | As incurred | As incurred | Suppliers |
| Advertising4 | $100,000 |  |  |  |
| Travel Expenses | $2,000 to | As arranged | As incurred | Third Parties |
| for training5 | $3,000 |  |  |  |
| Lease/Utility | $10,000 to | Lump Sum | As incurred | Third Parties |
| Deposits and Rent6 | $20,000 |  |  |  |
| Equipment, Fixtures, and Computer Systems7 | $15,000 to $25,000 | As arranged | As arranged | Us and Suppliers |
| Office Supplies8 | $1,000 to $2,000 | Lump Sum or installments/Lease | As incurred | Third Parties |
| Vehicle Operating | $3,000 to | As incurred | As incurred | Third Parties |
| Expenses9 | $6,000 |  |  |  |
| Insurance10 | $5,000 to $10,000 | Lump Sum | As arranged | Us |
| Miscellaneous | $10,000 to | As incurred | Before beginning | Third Parties |
| Start-up Costs11 | $20,000 |  | business |  |
| Additional Funds12 | $20,000 to $40,000 | As incurred | As incurred | Third Parties |
| TOTAL13 | $219,000 to $339,000 |  |  |  |

Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 19–22)

Question 4

What is the estimated total initial investment range to start an Anago franchise?

Accepted Answer

| Type of Expense1 | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Initial Fee / Subfranchise Fee2 | $98,000 | Lump Sum | Upon signing the Subfranchise Rights Agreement | Us |
| Legal and | $5,000 to | As arranged | As incurred | Attorneys and |
| Accounting3 | $15,000 |  |  | Accountants |
| Type of Expense1 | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
| Marketing and | $50,000 to | As incurred | As incurred | Suppliers |
| Advertising4 | $100,000 |  |  |  |
| Travel Expenses | $2,000 to | As arranged | As incurred | Third Parties |
| for training5 | $3,000 |  |  |  |
| Lease/Utility | $10,000 to | Lump Sum | As incurred | Third Parties |
| Deposits and Rent6 | $20,000 |  |  |  |
| Equipment, Fixtures, and Computer Systems7 | $15,000 to $25,000 | As arranged | As arranged | Us and Suppliers |
| Office Supplies8 | $1,000 to $2,000 | Lump Sum or installments/Lease | As incurred | Third Parties |
| Vehicle Operating | $3,000 to | As incurred | As incurred | Third Parties |
| Expenses9 | $6,000 |  |  |  |
| Insurance10 | $5,000 to $10,000 | Lump Sum | As arranged | Us |
| Miscellaneous | $10,000 to | As incurred | Before beginning | Third Parties |
| Start-up Costs11 | $20,000 |  | business |  |
| Additional Funds12 | $20,000 to $40,000 | As incurred | As incurred | Third Parties |
| TOTAL13 | $219,000 to $339,000 |  |  |  |

Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 19–22)

Question 5

How many Anago outlets closed in 2022?

Accepted Answer

|  | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|---|---|---|---|---|---|---|---|---|
| OR | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| PA | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
| P.R. | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| SC | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| TN | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| TX | 2022 | 4 | 0 | 0 | 0 | 0 | 0 | 4 |
|  | 2023 | 4 | 0 | 0 | 0 | 0 | 0 | 4 |
|  | 2024 | 4 | 0 | 0 | 0 | 0 | 0 | 4 |
| UT | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| VA | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Totals | 2022 | 44 | 3 | 0 | 0 | 1 | 1 | 45 |
|  | 2023 | 45 | 2 | 0 | 0 | 0 | 0 | 47 |
|  | 2024 | 47 | 7 | 0 | 0 | 0 | 6 | 48 |
| State | Year | Outlets at the Start of Year | Outlets Opened | Reacquired From Subfranchisee | Outlets Closed | Outlets Sold to Subfranchisee | Outlet

Source: Item 20 — OUTLETS AND FRANCHISEES INFORMATION (FDD pages 55–62)

Question 6

How many Anago outlets were open at the start of 2022?

Accepted Answer

023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Totals | 2022 | 44 | 3 | 0 | 0 | 1 | 1 | 45 |
|  | 2023 | 45 | 2 | 0 | 0 | 0 | 0 | 47 |
|  | 2024 | 47 | 7 | 0 | 0 | 0 | 6 | 48 |
| State | Year | Outlets at the Start of Year | Outlets Opened | Reacquired From Subfranchisee | Outlets Closed | Outlets Sold to Subfranchisee | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|
| DE | 2022 | 1 | 0 | 0 | 1 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 |
**TABLE NO. 4 STATUS OF COMPANY OWNED DOMESTIC OUTLETS FOR YEARS 2022 TO 2024**

| NV | 2022 | 0 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|---|
|  | 2023 | 0 | 0 | 1 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 1 | 0 |
| Totals | 2022 | 1 | 0 | 0 | 1 | 0 | 0 |
|  | 2023 | 0 | 0 | 1 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 1 | 0 |
|  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |
| State | Franchise Agreements Signed But Outlet Not Yet in Operation | Projected New Franchised Outlets During The Next Fiscal Year | Projected New Company Owned Outlets During the Next Fiscal Year |
|---|---|---|---|
| NJ | 0 | 2 | 0 |
| NY | 0 | 1 | 0 |
| PA | 0 | 2 | 0 |
| TX | 0 | 1 | 0 |
| Total | 0 | 6 | 0 |
**TABLE NO. 5 PROJECTED DOMESTIC OPENINGS AS OF DECEMBER 31, 2024 FOR 2025**

| State | Franchise Agreements Signed But Outlet Not Yet in Operation | Projected New Franchised Outlets During The Next Fiscal Year | Projected New Company Owned Outlets During the Next Fiscal Year |
|-------|----------------------------------------------------------------|--------------------------------------------------------------------|-----------------------------------------------------------------------|
| NJ    | 0                                                              | 2                                                                  | 0                                                                     |
| NY    | 0                                                              | 1                                                                  | 0                                                                     |
| PA    | 0                                                              | 2                                                                  | 0                                                                     |
| TX    | 0                                                              | 1                                                                  | 0                                                                     |
| Total | 0                                                              | 6                                                                  | 0                                                                     |

**TABLE NO. 1 SYSTEMWIDE INTERNATIONAL OUTLET SUMMARY FOR YEARS 2023 TO 2024**

| Country | Year | Number of Transfers |
|---|---|---|
| Canada | 2022 | 0 |
|  | 2023 | 0 |
|  | 2024 | 0 |
| Total | 2022 | 0 |
|  | 2023 | 0 |
|  | 2024 | 0 |
**TABLE NO.

Source: Item 20 — OUTLETS AND FRANCHISEES INFORMATION (FDD pages 55–62)

Question 7

How many Anago outlets opened in 2023?

Accepted Answer

|  | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|---|---|---|---|---|---|---|---|---|
| OR | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| PA | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
| P.R. | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| SC | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| TN | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| TX | 2022 | 4 | 0 | 0 | 0 | 0 | 0 | 4 |
|  | 2023 | 4 | 0 | 0 | 0 | 0 | 0 | 4 |
|  | 2024 | 4 | 0 | 0 | 0 | 0 | 0 | 4 |
| UT | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| VA | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Totals | 2022 | 44 | 3 | 0 | 0 | 1 | 1 | 45 |
|  | 2023 | 45 | 2 | 0 | 0 | 0 | 0 | 47 |
|  | 2024 | 47 | 7 | 0 | 0 | 0 | 6 | 48 |
| State | Year | Outlets at the Start of Year | Outlets Opened | Reacquired From Subfranchisee | Outlets Closed | Outlets Sold to Subfranchisee | Outlets at End of the Year |

Source: Item 20 — OUTLETS AND FRANCHISEES INFORMATION (FDD pages 55–62)

Question 8

How many Anago outlets were operating at the end of 2024?

Accepted Answer

| Franchised | 2022 | 44 | 45 | 1 |
|---|---|---|---|---|
|  | 2023 | 45 | 47 | 2 |
|  | 2024 | 47 | 48 | 1 |
| Company Owned | 2022 | 1 | 0 | -1 |
|  | 2023 | 0 | 1 | 1 |
|  | 2024 | 1 | 0 | -1 |
| Total Outlets | 2022 | 45 | 45 | 0 |
|  | 2023 | 45 | 48 | 3 |
|  | 2024 | 48 | 48 | 0 |
| State | Year | Number of Transfers |  |  |

Source: Item 20 — OUTLETS AND FRANCHISEES INFORMATION (FDD pages 55–62)

Question 9

How many Anago outlets were reacquired from subfranchisees in 2024?

Accepted Answer

| Country | Year | Outlets at the Start of Year | Outlets Opened | Reacquired From Subfranchisee | Outlets Closed | Outlets Sold to Subfranchisee | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|
| Canada | 2022 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 2022 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 |

Source: Item 20 — OUTLETS AND FRANCHISEES INFORMATION (FDD pages 55–62)

Question 10

How many Anago outlets were sold to subfranchisees in 2023?

Accepted Answer

| Country | Year | Outlets at the Start of Year | Outlets Opened | Reacquired From Subfranchisee | Outlets Closed | Outlets Sold to Subfranchisee | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|
| Canada | 2022 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 2022 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 |

Source: Item 20 — OUTLETS AND FRANCHISEES INFORMATION (FDD pages 55–62)

Question 11

What pre-opening support does Anago provide to a new subfranchisee after the Subfranchise Rights Agreement is signed?

Accepted Answer

**Except as listed below, we are not required to provide you with any assistance.**

#### **PRE-OPENING SUPPORT**:

After the Subfranchise Rights Agreement is signed and before you begin to operate your Anago Subfranchise Rights Business, if you are not in default under your Subfranchise Rights Agreement, we provide the following:

**Initial Training** (Section 2.1 of Subfranchise Rights Agreement) – We will provide initial training for one person for up to two weeks, which training will take place not only at one of our offices but also at such other locations as we mutually agree upon. See below under the heading "Training Program" for additional information.

**Loan of the Anago Manuals** (Section 2.2 of the Subfranchise Rights Agreement) - We will loan to you a copy of the Anago Manuals, including the Unit Franchise Operating Manual, that you are required to use and provide to your Unit Franchisees. These manuals cannot be changed, altered or edited in whole or in part by you or your Unit Franchisees.

**Pre-Opening Assistance and Support** (Section 2.3 of the Subfranchise Rights Agreement):

- (a) **Original Materials**. We will provide you with assistance in (a) the preparation of advertising brochures, (b) compiling a list of local suppliers, (c) compiling a list of prospective clients, and (d) the set up for local newspaper advertising for the Unit Franchisees.
- (b) **Computer System/Software**. Specifications for the computer system will be provided, along with the custom NBDS formats.
- (c) **Informal Advice**. We may provide you, although not obligated to do so, informal advice and instruction in the day-to-day operations of your Anago Subfranchise Rights Business.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)

Question 12

What was the total number of Anago franchise transfers across all states in 2023?

Accepted Answer

| State | Year | Number of Transfers |
|-------|------|------------------------|
|       | 2022 | 1                      |
| AZ    | 2023 | 0                      |
|       | 2024 | 0                      |
|       | 2022 | 0                      |
| MN    | 2023 | 0                      |
|       | 2024 | 1                      |
|       | 2022 | 0                      |
| OH    | 2023 | 0                      |
|       | 2024 | 1                      |
|       | 2022 | 1                      |
| Total | 2023 | 0                      |
|       | 2024 | 2                      |

Source: Item 20 — OUTLETS AND FRANCHISEES INFORMATION (FDD pages 55–62)

Question 13

What is the total number of pages in the Anago Master Franchise Operating Manual's Section 1, 'INTRODUCTION TO THE MANUAL'?

Accepted Answer

| MASTER FRANCHISE OPERATING MANUAL                   |                 |  |  |  |
|-----------------------------------------------------|-----------------|--|--|--|
| SUBJECT                                             | NUMBER OF PAGES |  |  |  |
| SECTION 1 – |  |  |  |  |
| INTRODUCTION TO THE MANUAL |  |  |  |  |
| MANUAL ORGANIZATION                                 | 1               |  |  |  |
| OWNERSHIP OF THE MANUAL                             | 1               |  |  |  |
| PURPOSE OF THIS MANUAL                              | 1               |  |  |  |
| IMPORTANCE OF CONFIDENTIALITY                       | 1               |  |  |  |
| ARTIFICIAL INTELLIGENCE (AI) POLICY                 | 1               |  |  |  |
| KEEPING THE MANUAL CURRENT                          | 1               |  |  |  |
| SUBMITTING SUGGESTIONS                              | 1               |  |  |  |
| DISCLAIMER                                          | 1               |  |  |  |
| TOTAL                                               | 8               |  |  |  |

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 14

What is the total number of pages in the Anago Master Franchise Operating Manual's Section 2, 'INTRODUCTION TO THE FRANCHISE SYSTEM'?

Accepted Answer

| MASTER FRANCHISE OPERATING MANUAL                   |                 |  |  |  |
|-----------------------------------------------------|-----------------|--|--|--|
| SUBJECT                                             | NUMBER OF PAGES |  |  |  |
| SECTION 1 – |  |  |  |  |
| INTRODUCTION TO THE MANUAL |  |  |  |  |
| MANUAL ORGANIZATION                                 | 1               |  |  |  |
| OWNERSHIP OF THE MANUAL                             | 1               |  |  |  |
| PURPOSE OF THIS MANUAL                              | 1               |  |  |  |
| IMPORTANCE OF CONFIDENTIALITY                       | 1               |  |  |  |
| ARTIFICIAL INTELLIGENCE (AI) POLICY                 | 1               |  |  |  |
| KEEPING THE MANUAL CURRENT                          | 1               |  |  |  |
| SUBMITTING SUGGESTIONS                              | 1               |  |  |  |
| DISCLAIMER                                          | 1               |  |  |  |
| TOTAL                                               | 8               |  |  |  |
| SECTION 2 – |  |  |  |  |
| INTRODUCTION TO THE FRANCHISE SYSTEM |  |  |  |  |
| WELCOME                                             | 1               |  |  |  |
| HISTORY OF THE COMPANY                              | 1               |  |  |  |
| WHO TO CALL                                         | 1               |  |  |  |
| OVERVIEW OF SERVICES PROVIDED TO FRANCHISEES        | 2               |  |  |  |
| OVERVIEW OF YOUR RESPONSIBILITIES                   | 1               |  |  |  |
| VISITS FROM US                                      | 1               |  |  |  |
| FEES                                                | 1               |  |  |  |
| TOTAL                                               | 8               |  |  |  |
| SECTION 3 – |  |  |  |  |
| UNDERSTANDING FRANCHISING |  |  |  |  |
| UNIFIED THINKING                                    | 1               |  |  |  |
| PURPOSE OF FRANCHISING                              | 1               |  |  |  |
| PURPOSE OF BUSINESSES                               | 1               |  |  |  |
| PURPOSE OF A FRANCHISE COMPANY                      | 1               |  |  |  |
| FUNCTION OF BRAND                                   | 1               |  |  |  |
| FUNCTION OF THE OPERATING SYSTEM                    | 1               |  |  |  |

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 15

What is the total number of pages in the Anago Master Franchise Operating Manual's Section 3, 'UNDERSTANDING FRANCHISING'?

Accepted Answer

| MASTER FRANCHISE OPERATING MANUAL                   |                 |  |  |  |
|-----------------------------------------------------|-----------------|--|--|--|
| SUBJECT                                             | NUMBER OF PAGES |  |  |  |
| SECTION 3 – |  |  |  |  |
| UNDERSTANDING FRANCHISING |  |  |  |  |
| UNIFIED THINKING                                    | 1               |  |  |  |
| PURPOSE OF FRANCHISING                              | 1               |  |  |  |
| PURPOSE OF BUSINESSES                               | 1               |  |  |  |
| PURPOSE OF A FRANCHISE COMPANY                      | 1               |  |  |  |
| FUNCTION OF BRAND                                   | 1               |  |  |  |
| FUNCTION OF THE OPERATING SYSTEM                    | 1               |  |  |  |

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 16

What is the total number of pages of materials provided by Anago related to the listed subjects?

Accepted Answer

| SUBJECT | NUMBER OF PAGES |
|---|---|
| SECTION 1 – INTRODUCTION TO ANAGOCLOUD |  |
| LOGGING INTO ANAGOCLOUD.COM | 1 |
| NAVIGATING ANAGOCLOUD™ | 3 |
| SEARCHING FOR RECORDS | 1 |
| TOTAL | 5 |
| SECTION 2 – FRANCHISE INQUIRIES AND SALES |  |
| FRANCHISE INQUIRIES | 11 |
| FRANCHISE SALES | 7 |
| TOTAL | 18 |
| SECTION 3 – UPDATING FR FOR A INDEPENDENT CONTRACTOR |  |
| TOTAL | 3 |
| SECTION 4 – REPORTS |  |
| WEEKLY REPORTS – CLIENT SALES | 2 |
| MONTHLY REPORTS | 2 |
| QUARTERLY REPORTS | 2 |

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 17

What is the total projected number of new franchised Anago outlets during the next fiscal year across all listed states?

Accepted Answer

1 |
|  | 2024 | 1 | 0 | 0 | 0 | 1 | 0 |
| Totals | 2022 | 1 | 0 | 0 | 1 | 0 | 0 |
|  | 2023 | 0 | 0 | 1 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 1 | 0 |
|  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |
| State | Franchise Agreements Signed But Outlet Not Yet in Operation | Projected New Franchised Outlets During The Next Fiscal Year | Projected New Company Owned Outlets During the Next Fiscal Year |
|---|---|---|---|
| NJ | 0 | 2 | 0 |
| NY | 0 | 1 | 0 |
| PA | 0 | 2 | 0 |
| TX | 0 | 1 | 0 |
| Total | 0 | 6 | 0 |
**TABLE NO. 5 PROJECTED DOMESTIC OPENINGS AS OF DECEMBER 31, 2024 FOR 2025**

| State | Franchise Agreements Signed But Outlet Not Yet in Operation | Projected New Franchised Outlets During The Next Fiscal Year | Projected New Company Owned Outlets During the Next Fiscal Year |
|-------|----------------------------------------------------------------|--------------------------------------------------------------------|-----------------------------------------------------------------------|
| NJ    | 0                                                              | 2                                                                  | 0                                                                     |
| NY    | 0                                                              | 1                                                                  | 0                                                                     |
| PA    | 0                                                              | 2                                                                  | 0                                                                     |
| TX    | 0                                                              | 1                                                                  | 0                                                                     |
| Total | 0

Source: Item 20 — OUTLETS AND FRANCHISEES INFORMATION (FDD pages 55–62)

Question 18

What types of events require an Anago subfranchisor to notify the franchisor within 5 days?

Accepted Answer

#### **SECTION 4.10 NOTICES TO US.**

- (a) You must notify Our local office of any Anago Client complaint within 2 hours of actual receipt of the complaint.
  - (b) You must also notify Us in writing within 5 days of any of the following events:
  - (i) The start of, any action, suit, countersuit or other proceeding against You or any of Your employees;
  - (ii) Your, or any of Your employees', receipt of any notice of noncompliance with any law, rule or regulation; or
  - (iii) The issuance of any order, writ, injunction, award or decree of any court, agency or other governmental instrumentality against You or any of Your employees.
- (c) You will provide Us with any information We request, within 5 days of request, about the progress and outcome of events.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 19

What is the due date for the Administrative Support Fee, Billing and Collection Fees, and Website Maintenance Fee for Anago?

Accepted Answer

f you fail the Anago Training Program, you must                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

| Type of Fee1                                    | Amount                                                                                                                                                                                                  | Due Date2                                                      | Remarks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  |  | attend retraining classes in the areas the training officer feels are necessary for you to successfully complete the Anago Training Program for Subfranchisors. |
| Administrative Support Fee | 2% of the Gross Revenues collected by the Subfranchisor. | Monthly on the 20th day of each month | This fee is for continued assistance we may provide to you, including advisory assistance in the promotion of Unit Franchises, sale of clients, and referral of leads, additionally, it includes a support phone line and email ticketing system for general use and troubleshooting within NBDS. |
| Billing and Collection Fees | An invoice servicing fee of the greater of \$1,000 or 1% of your Gross Revenues and \$25 for each unit franchise statement (Waived for first 12 months. See Remarks.). | Monthly on the 20th day of each month | Under the Unit Franchise Agreement, your Unit Franchise will appoint you as its billing and collections agent.

Source: Item 6 — OTHER FEES (FDD pages 12–19)

Question 20

How does the initial fee for an Anago subfranchise in Item 5 compare to the ongoing fees potentially listed in Item 6?

Accepted Answer

>**Initial Fees / Subfranchise Fee Deposit**

In order to apply to become our master franchisee or subfranchisor, you must submit to us a completed application and pay the Initial Fee. The Initial Fee to obtain Anago Subfranchise Rights is \$98,000 for the counties and/or cities that will comprise your territory. The Initial Fee is payable to us in full upon signing the Subfranchise Rights Agreement and isfully earned and non-refundable. However, if we do not offer you the right to enter into an Anago Subfranchise Rights Agreement or we offer you the right but you fail to enter into the agreement, in either case, within 30 days following your execution of a deposit agreement (the "Deposit Agreement") in the form attached as Exhibit C to this Disclosure Document, we will refund the amount you paid when you signed the Deposit Agreement, less any amounts as described in the Deposit Agreement. You are responsible to pay any sales, use or other taxes (other than our income tax) relating to the purchase of an Anago Subfranchise Rights Business.

#### **Referral Fee**

If you were referred to us by an existing subfranchisor and you purchase a territory, we will pay the referring subfranchisor \$20,000, subject to certain terms and conditions. This does not apply if you purchase an existing territory from a referring subfranchisor.

Question 21

What is the lowest reported EBITDA (Earnings Before Interest, Income Taxes, Depreciation, and Amortization) figure, including unrealized gains or losses and realized gains or losses, for Anago franchises across all the years presented in the table?

Accepted Answer

| Earningsbefore interest, | incometaxes,depreciation, |  |  |  |  |
|---|---|---|---|---|---|
| amortization (EBITDA), | unrealized | gains |  |  |  |
| or losses and realized | gainsor losses |  | $1,454,248 | $1,454,333 | $647,344 |

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 22

If I am a corporation buying an Anago franchise, who else must personally guarantee my obligations?

Accepted Answer

If you are a corporation, partnership, limited liability company, or other legal entity, references to "you" will also include your owners who must personally guarantee and assume your obligations.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–9)

Question 23

If a suit to foreclose any lien or mortgage against the premises or assets of the Anago subfranchisor is instituted, how long does the subfranchisor have to dismiss the suit to avoid automatic termination?

Accepted Answer

execution is levied against Subfranchisor's operation or property, or suit to foreclose any lien or mortgage against the Premises or assets of Subfranchisor is instituted against Subfranchisor and not dismissed within 45 days

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 24

What must an Anago subfranchisor do before registering or using a domain name containing 'Anago Cleaning Systems' or related terms?

Accepted Answer

Subfranchisor shall not register or use any domain name or URL that contains, uses or displays the words "Anago Cleaning Systems" or any portion thereof, or the initials "ACS," "AFI," or any Proprietary Marks, or other related or confusingly similar words or symbols, unless Subfranchisor first receives Franchisor's written consent. Subfranchisor may not use any Proprietary Mark or any derivation of the Proprietary Marks on the Internet, in any electronic advertising or social media, without the Franchisor's prior written consent.

Source: Item 13 — TRADEMARKS (FDD pages 38–41)

Question 25

Under what conditions is an Anago subfranchisor obligated to make its office available as a training center?

Accepted Answer

Subfranchisor agrees that it will make its office available as a training center and provide instruction for new or other current Anago subfranchisors as Franchisor reasonably requests. Franchisor will have the right to approve the individual providing the training. Franchisor will reimburse Subfranchisor for reasonable lunch or dinner expenses related to the training of other Anago subfranchisors.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 26

According to Anago, what conditions must be met for increases or decreases in a contract to affect my payment?

Accepted Answer

- (x) On buildings with varying occupancy levels you will pay a monthly C-Fee based on amount of square footage cleaned.

- (xi) Should an additional Account request an increase in services and the monthly gross billings increase, additional C-Fees may be charged in our sole discretion.

- (xii) There is no C-Fee assessed when You obtain an Account solely through Your own marketing and sales efforts, without assistance from the Regional Office (excluding the preparation of the actual bid proposal).

- (xiii) Partial C-Fees may be assessed at 50% of normal schedule if You need a Regional Office representative to assist with the bid pricing or to close the sale.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 27

According to the Anago FDD, what are the conditions under which the franchisor must approve a transfer of the subfranchise?

Accepted Answer

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| l. Franchisor approval of transfer by franchisee | Section 7.2 | We have the right to approve or disapprove of any transfers, except that consent is not required for the following transfers; (i) transfer by an individual to an entity wholly owned by such individual, which entity shall conduct no business other than the Subfranchise Business; (ii) a transfer of less than a 5% interest in a publicly-held corporation; (iii) if a Subfranchisor is an entity, a transfer of any interest in the Subfranchisor from an existing owner to another existing owner; (iv) transfers of less than a controlling interest, in the aggregate, in you; and (v) transfers which are made for family and estate planning purposes (1) to your spouse, (2) to your adult child(ren) or (3) into a trust agreement for the benefit of you, your spouse, or your children. |

| m. Conditions for franchisor approval of transfer                         | Section 7.3     | 1. You are not in default (monetary or non monetary) under any agreement you have with us; 2. You and your owners must sign a general release of all claims against us; 3. You must subordinate any purchase money financing; 4. The transferee must either assume your obligations under the Subfranchise Rights Agreement or, at our election, sign our then current form of Subfranchise Rights Agreement and other ancillary agreements; 5. The transferee must pay a transfer fee of \$10,000 in lieu of paying an initial fee; 6. We must interview and approve the transferee; the transferee must meet our educational, managerial and business standards and meet such other

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–52)

Question 28

According to the Anago FDD, what sections of the Subfranchise Rights Agreement are modified regarding waiver of punitive damages and jury trial in Illinois?

Accepted Answer

4. **WAIVER OF PUNITIVE DAMAGES CLAIMS; WAIVER OF JURY TRIAL**. The following language is added to the end of Sections 13.6 (Waiver of Punitive Damages Claims) and 13.7 (Waiver of Jury Trial) of the Subfranchise Rights Agreement:

**HOWEVER, THIS SECTION SHALL NOT ACT AS A CONDITION, STIPULATION OR PROVISION PURPORTING TO BIND ANY PERSON ACQUIRING ANY FRANCHISE TO WAIVE COMPLIANCE WITH ANY PROVISION OF THE ILLINOIS FRANCHISE DISCLOSURE ACT AT SECTION 705/41 OR ILLINOIS REGULATIONS AT SECTION 200.609.**

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 29

According to the Anago franchise agreement, what happens if a Subfranchisor fails to meet the minimum Client Bid requirements during a Measurement Period?

Accepted Answer

atement, form or information as required

under this Agreement. In addition, a \$100 fee will be imposed each day for failure to deposit client receipts properly into the required bank accounts.

#### Section 3.4 - Minimum Client Bids

Subfranchisor agrees to schedule and conduct marketing appointments with prospective cleaning clients that result in a bid for service (each a "Client Bid") throughout the Term. Franchisor may establish and describe in the Manuals, based on the population of Subfranchisor's Area, minimum numbers of Client Bids that Subfranchisor must schedule and conduct during a measurement period which, in Franchisor's discretion, may be an annual period or a 6-month period (each a "Measurement Period"). If Subfranchisor fails to satisfy, on average, the minimum requirements of the applicable Measurement Period, then (i) it agrees to pay Franchisor \$150 multiplied by the difference between the minimum Client Bids required for the Measurement Period and the num

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 30

What other actions besides understatement of gross revenues can trigger the Anago Subfranchisor's obligation to reimburse the Franchisor's inspection costs?

Accepted Answer

- (e) Subfranchisor shall take all steps reasonably necessary to enforce all Unit Franchisees' obligations under the Unit Franchise Agreement in the Area. If Franchisor or its Affiliates incur expenses to enforce or defend a Unit Franchise Agreements in the Area, Subfranchisor shall reimburse Franchisor for all costs and expenses incurred by Franchisor in any such enforcement actions, including, without limitation, arbitration or mediation fees, court costs, reasonable attorneys' fees and travel expenses.

- (f) If Subfranchisor denies the Franchisor the right to inspect his or her Subfranchise Business or to audit the accounting records of his or her Subfranchise Business;

- (g) If Subfranchisor, contrary to this Agreement, purports to transfer any rights or obligations under this Agreement, or any interest in Subfranchisor, to any third party without first obtaining Franchisor's prior written consent as required under this Agreement;

- (h) If Subfranchisor, or any of its directors, officers or owners, discloses or divulges in any material respect the contents of the Anago Manuals or other trade secret or Confidential Information in violation of this Agreement;

- (i) If Subfranchisor knowingly maintains false books or records, or knowingly submits any false reports to Franchisor or refuses to submit reports or documents as requested within a reasonable time period but not to exceed 90 days;

- (j) If Franchisor has received more than three complaints from Unit Franchisees in the Area in a 12-month period, or more than two complaints

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 31

Does the Anago agreement authorize the Subfranchisor to utilize the Related Materials in machine-readable form?

Accepted Answer

Without limiting any other confidentiality requirements of the Subfranchisor under the Subfranchise Rights Agreement or any other agreement with us, the Subfranchisor agrees not to provide or otherwise make available any portion of the Software, including documentation and machine-readable code, or the Related Materials in any form to any person other than the Subfranchisor's employees with a need to know such information and who are themselves bound to written confidentiality obligations similar to those contained herein.

The Subfranchisor will not reverse assemble or reverse compile the Software in whole or in part.

Upon expiration or termination of this Agreement, the Subfranchisor will immediately deliver to the Franchisor all Software and Related Materials.

This requirement will apply to all copies in any form including translations, compilations or partial copies.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 32

Does the Anago agreement define capitalized terms differently than the Subfranchise Rights Agreement?

Accepted Answer

- (a) **General.** This Agreement is being entered into pursuant to Subsection 2.3(b) of that certain Anago Subfranchise Rights Agreement between the Franchisor and the Subfranchisor, dated of even date herewith (the "Subfranchise Agreement").

All capitalized terms used in this Agreement have the same definitions as set forth in the Subfranchise Rights Agreement, unless otherwise expressly defined in this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 33

Does the Anago agreement specify if the Subfranchisor can use the Software on computers?

Accepted Answer

ule"); and (d) provide Software maintenance, all as described in this Agreement.The term "Software" means the object code version of any proprietary or third-party software to which Franchisor provides Subfranchisor access for use in connection with its Subfranchise Business, including any updates or new versions thereof. Software does not include source code. The term "Related Materials" means any printed material not consisting of Software programs, such as Software user instructions, and which is designated by the Franchisor as available under license to the Subfranchisor for the licensed Software to which such Related Materials relate.
- (c) **Term of License.** The license granted in this Agreement for any Software and Related Materials will be in effect for the Term (so long as the Subfranchise Rights Agreement is in full force and effect), unless sooner terminated in accordance with this Agreement.
- (d) **Terms of Use.** The Software (including any changes Franchisor makes to the Software at the request of Subfranchisor) may be used by the Subfranchisor on any number of workstations, computers, or mobile devices approved by the Franchisor. Security of the Software, collected data, and Related Materials from outside intrusion through any aforementioned workstations, computers, or mobile devices will be the sole responsibility of the Subfranchisor, regardless of any assistance provided by Franchisor to protect the Software, collected data and Related Materials. Backup of the data is the Franchisor's responsibility. Should the backup data be lost or corrupted through no fault of the Franchisor, the Franchisor shall not be responsible for any cost of recovery of the data by the Subfranchisor nor shall the Franchisor be liable for any lost income or damages of the Subfranchisor as of the result of data loss. Title and full ownership rights to the Software at all times remains with the Franchisor, including with respect to any enhancements or modifications Franchisor makes to the Software at Subfranchisor's request. The Subfranchisor may not enhance or modify the Software in any manner. The rights granted under this Agreement authorize the Subfranchisor to utilize the Related Materials in printed form, in support of its use of the Software in machine-readable form.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 34

Does the Anago agreement specify if the Subfranchisor can use the Software on mobile devices?

Accepted Answer

- (k) **Hardware Requirements.** It is the obligation of the Subfranchisor to obtain the computer hardware, workstations, and mobile devices required for the operation of the Software as periodically specified in the Anago Manuals (as defined in the Subfranchise Agreement), the Subfranchise Agreement or otherwise in writing.

Configuration, setup, and all network wiring are the responsibilities of the Subfranchisor.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 35

Does the Anago agreement specify if the Subfranchisor can use the Software on workstations?

Accepted Answer

- (d) **Terms of Use.** The Software (including any changes Franchisor makes to the Software at the request of Subfranchisor) may be used by the Subfranchisor on any number of workstations, computers, or mobile devices approved by the Franchisor.

Security of the Software, collected data, and Related Materials from outside intrusion through any aforementioned workstations, computers, or mobile devices will be the sole responsibility of the Subfranchisor, regardless of any assistance provided by Franchisor to protect the Software, collected data and Related Materials.

Backup of the data is the Franchisor's responsibility.

Should the backup data be lost or corrupted through no fault of the Franchisor, the Franchisor shall not be responsible for any cost of recovery of the data by the Subfranchisor nor shall the Franchisor be liable for any lost income or damages of the Subfranchisor as of the result of data loss.

Title and full ownership rights to the Software at all times remains with the Franchisor, including with respect to any enhancements or modifications Franchisor makes to the Software at Subfranchisor's request.

The Subfranchisor may not enhance or modify the Software in any manner.

The rights granted under this Agreement authorize the Subfranchisor to utilize the Related Materials in printed form, in support of its use of the Software in machine-readable form.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 36

Does the Anago agreement specify that the Subfranchisor is responsible for the security of the Software, collected data, and Related Materials regardless of any assistance provided by Anago?

Accepted Answer

l and that no part or exhibit of this agreement may be discussed nor presented in any form to any person, entity or agency outside of AFI, Inc. unless required by local, state or federal law.

#### Section 3.9 - Information Security

Subfranchisor must implement all administrative, physical and technical safeguards necessary to protect any information that can be used to identify an individual, including names, addresses, telephone numbers, e-mail addresses, employee identification numbers, signatures, passwords, financial information, credit card information, biometric or health data, governmentissued identification numbers and credit report information ("Personal Information") in accordance with applicable law and industry best practices. It is entirely Subfranchisor's responsibility (even if Franchisor provides Subfranchisor any assistance or guidance in that regard) to confirm that the safeguards Subfranchisor uses to protect Personal Information comply with all applicable laws and industry best practices related to the collection, access, use, storage, disposal and disclosure of Personal Information. If Subfranchisor becomes aware of a suspected or actual breach of security or unauthorized access involving Personal Information, Subfranchisor will notify Franchisor immediately and specify the extent to which Personal Information was compromised or disclosed.

#### Section 3.10 - Obligation to Mentor

Subfranchisor agrees that it will make its office available as a training center and provide instruction for new or other current Anago subfranchisors as Franchisor reasonably requests. Franchisor will have the right to approve the individual providing the training. Franchisor will reimburse Subfranchisor for reasonable lunch or dinner expenses related to the training of other Anago subfranchisors.

#### Section 3.11 - Use of Designated Suppliers.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 37

Does the Anago agreement specify that the Subfranchisor is responsible for the security of the Software, collected data, and Related Materials from outside intrusion through any workstations, computers, or mobile devices?

Accepted Answer

- (r) **Security.** The Franchisor will maintain safeguards, firewalls, and any measures deemed necessary to protect its proprietary property and information collected from the Subfranchisor through use of the Software that is stored within the Franchisor's designated servers.

The Franchisor is not responsible for any loss or damages caused by a breach of security through the Subfranchisor's computers, servers, or mobile devices.

#### Section 3.9 - Information Security

Subfranchisor must implement all administrative, physical and technical safeguards necessary to protect any information that can be used to identify an individual, including names, addresses, telephone numbers, e-mail addresses, employee identification numbers, signatures, passwords, financial information, credit card information, biometric or health data, governmentissued identification numbers and credit report information ("Personal Information") in accordance with applicable law and industry best practices. It is entirely Subfranchisor's responsibility (even if Franchisor provides Subfranchisor any assistance or guidance in that regard) to confirm that the safeguards Subfranchisor uses to protect Personal Information comply with all applicable laws and industry best practices related to the collection, access, use, storage, disposal and disclosure of Personal Information. If Subfranchisor becomes aware of a suspected or actual breach of security or unauthorized access involving Personal Information, Subfranchisor will notify Franchisor immediately and specify the extent to which Personal Information was compromised or disclosed.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 38

Does the Anago agreement specify that the Subfranchisor is responsible for the security of the Software, collected data, and Related Materials from outside intrusion?

Accepted Answer

t this agreement is strictly confidential and that no part or exhibit of this agreement may be discussed nor presented in any form to any person, entity or agency outside of AFI, Inc. unless required by local, state or federal law.

#### Section 3.9 - Information Security

Subfranchisor must implement all administrative, physical and technical safeguards necessary to protect any information that can be used to identify an individual, including names, addresses, telephone numbers, e-mail addresses, employee identification numbers, signatures, passwords, financial information, credit card information, biometric or health data, governmentissued identification numbers and credit report information ("Personal Information") in accordance with applicable law and industry best practices. It is entirely Subfranchisor's responsibility (even if Franchisor provides Subfranchisor any assistance or guidance in that regard) to confirm that the safeguards Subfranchisor uses to protect Personal Information comply with all applicable laws and industry best practices related to the collection, access, use, storage, disposal and disclosure of Personal Information. If Subfranchisor becomes aware of a suspected or actual breach of security or unauthorized access involving Personal Information, Subfranchisor will notify Franchisor immediately and specify the extent to which Personal Information was compromised or disclosed.

#### Section 3.10 - Obligation to Mentor

Subfranchisor agrees that it will make its office available as a training center and provide instruction for new or other current Anago subfranchisors as Franchisor reasonably requests. Franchisor will have the right to approve the individual providing the training. Franchisor will reimburse Subfranchisor for reasonable lunch or dinner expenses related to the training of other Anago subfranchisors.

#### Section 3.11 - Use of Designated Suppliers.

Franchisor reserves the right to identify, approve or designate, from time to time, (a) manufacturers, vendors, distributors, suppliers, and producers for the Anago System (each a "Vendor"), (b) the terms under which Vendors provide products or services (including insurance, cleaning products and supplies, equipment, and materials) to the Subfranchised Business and Franchised Businesses, and (c) the distribution methods for any goods or services provided to or used by the Subfranchised Business and any Franchised Businesses. For any product or service for which Franchisor has approved or designated a Vendor, Subfranchisor must purchase and require its Unit Franchisees to purchase all such goods and services only from the approved or designated Vendor for that product or service, under terms, in the manner, and from the source designated by Franchisor.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 39

Does the Anago agreement specify that the Subfranchisor is responsible for the security of the Software, collected data, and Related Materials from outside intrusion through any aforementioned workstations, computers, or mobile devices?

Accepted Answer

- (r) **Security.** The Franchisor will maintain safeguards, firewalls, and any measures deemed necessary to protect its proprietary property and information collected from the Subfranchisor through use of the Software that is stored within the Franchisor's designated servers.

The Franchisor is not responsible for any loss or damages caused by a breach of security through the Subfranchisor's computers, servers, or mobile devices.

#### Section 3.9 - Information Security

Subfranchisor must implement all administrative, physical and technical safeguards necessary to protect any information that can be used to identify an individual, including names, addresses, telephone numbers, e-mail addresses, employee identification numbers, signatures, passwords, financial information, credit card information, biometric or health data, governmentissued identification numbers and credit report information ("Personal Information") in accordance with applicable law and industry best practices. It is entirely Subfranchisor's responsibility (even if Franchisor provides Subfranchisor any assistance or guidance in that regard) to confirm that the safeguards Subfranchisor uses to protect Personal Information comply with all applicable laws and industry best practices related to the collection, access, use, storage, disposal and disclosure of Personal Information. If Subfranchisor becomes aware of a suspected or actual breach of security or unauthorized access involving Personal Information, Subfranchisor will notify Franchisor immediately and specify the extent to which Personal Information was compromised or disclosed.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 40

Does the Anago agreement specify that the Subfranchisor is responsible for the security of the Software, collected data, and Related Materials from outside intrusion through any aforementioned workstations, computers, or mobile devices regardless of any assistance provided by Anago?

Accepted Answer

- (d) **Terms of Use.** The Software (including any changes Franchisor makes to the Software at the request of Subfranchisor) may be used by the Subfranchisor on any number of workstations, computers, or mobile devices approved by the Franchisor.

Security of the Software, collected data, and Related Materials from outside intrusion through any aforementioned workstations, computers, or mobile devices will be the sole responsibility of the Subfranchisor, regardless of any assistance provided by Franchisor to protect the Software, collected data and Related Materials.

Backup of the data is the Franchisor's responsibility.

Should the backup data be lost or corrupted through no fault of the Franchisor, the Franchisor shall not be responsible for any cost of recovery of the data by the Subfranchisor nor

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 41

Does the Anago agreement specify that the Subfranchisor is responsible for the security of the Software, collected data, and Related Materials from outside intrusion through any aforementioned workstations, computers, or mobile devices regardless of any assistance provided by Anago to protect the Software, collected data and Related Materials?

Accepted Answer

- (d) **Terms of Use.** The Software (including any changes Franchisor makes to the Software at the request of Subfranchisor) may be used by the Subfranchisor on any number of workstations, computers, or mobile devices approved by the Franchisor.

Security of the Software, collected data, and Related Materials from outside intrusion through any aforementioned workstations, computers, or mobile devices will be the sole responsibility of the Subfranchisor, regardless of any assistance provided by Franchisor to protect the Software, collected data and Related Materials.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 42

What assistance does Anago provide with business development, and is it guaranteed?

Accepted Answer

- (d) **Assistance with Business Development.** We will, at Our discretion and subject to availability, continue to provide You with estimating expertise, custom proposals and references in order to assist development of Your Unit Franchise's business.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 43

What condition must occur for the conditional agreement regarding telephone numbers to become effective for an Anago franchise?

Accepted Answer

- 2. This conditional agreement will become effective automatically upon termination or expiration of Assignor's SRA. Upon the occurrence of one of these conditions, Assignor must do all things required by Assignee and the telephone company to assure the effectiveness of the assignment of telephone numbers as if the Assignee had been originally issued such telephone numbers, listings and the usage thereof.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 44

What condition must an Anago subfranchisee meet to prevent Anago from soliciting or licensing others to solicit the development of Anago Unit Franchisees within their Area?

Accepted Answer

You are not permitted to solicit Unit Franchisees or clients outside your Area, including through other channels of distribution such as the Internet, catalogs, telemarketing or other direct marketing. As long as you are in compliance with your obligations under the Subfranchise Rights Agreement, we will not solicit or license another to solicit the development of Anago Unit Franchisees within your Area.

Source: Item 12 — TERRITORY (FDD pages 36–38)

Question 45

What conditions must be satisfied for Anago to consent to a transfer of interest in the Franchise Agreement?

Accepted Answer

ment between You and Us or Our Business Affiliates;
  - (ii) You sign a general release of all claims against Us, Our Business Affiliates, and our and their respective officers, directors, shareholders, representatives, agents, successors and assigns;
  - (iii) The transferee is not involved in a Competitive Business, whether as a franchisor, licensor or as a licensee or franchisee of any chain or system that is similar in nature or in competition with Us, except that the transferee may be Our existing Unit Franchisee;
  - (iv) The transferee pays a transfer fee of the greater of: (a) \$2,000, or (b) 10% of the sales price, in lieu of the Initial Fee (the "**Transfer Fee**"). If the transferee is a spouse or child of the transferor, no Transfer Fee will be charged but a reasonable administrative fee (currently \$250) will be charged;
  - (vi) The transferee interviews at Our principal office without expense to Us and demonstrates to Our satisfaction that the transferee has the business and personal skills, reputation and financial capacity We require;
    - (vii) The transferee satisfactorily completes Our application process;
    - (viii) The transferee demonstrates to Our sole satisfaction that he or she has

properly assumed and will be able to comply with all of his or her obligations under this Agreement. You will remain liable for all obligations to Us under this Agreement before the effective date of the transfer and will sign all instruments We reasonably request to evidence these liabilities;

- (viii) At the transferee's expense, the transferee completes the Anago Orientation Program then in effect for new Unit Franchisees upon all terms We reasonably require;
- (ix) We are satisfied that the proposed terms of sale or other factors involved in the transfer do not materially reduce the potential ability of the transferee effectively to assume and carry out his or her obligations under this Agreement; and
- (x) The transferee must sign Our then-current franchise agreement, which may contain terms materially different than this Agreement; and
- (xi) Our approval of any transfer is not a waiver of any future right to approve later transfers.

We have no duty to consider these factors and approval of a proposed tran

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 46

What is the consequence if an Anago Subfranchisor fails to comply with applicable laws, rules, and regulations?

Accepted Answer

You will comply with all federal, state, and local laws, rules and regulations, and will timely obtain, maintain and renew when required all permits, certificates, or licenses necessary for the proper conduct of the Anago Unit Franchise under this Agreement, including qualification to do business, fictitious, trade or assumed name registration, occupational licenses, and OSHA requirements. You will provide copies of all inspection reports, warnings, certificates and ratings, issued by any governmental entity during the Term on the conduct of the Anago Unit Franchise that indicates Your material noncompliance with any applicable law, rule or regulation, to Us within 2 days of Your receipt of these items. We accept no responsibility for any of Your operations, janitorial or otherwise.

#### **SECTION 4.7 TAX PAYMENTS; CONTESTED ASSESSMENTS.**

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 47

Can Anago deny the assumption of the Note, even if they consent to a transfer of the Unit Franchise Agreement?

Accepted Answer

Our consent to a transfer is not a waiver of any claims We may have against You, nor is it a waiver of Our right to demand the transferee's exact compliance with this Agreement. No transfer (even if approved by Us) relieves You of liability for Your conduct before the transfer, including conduct in breach of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 48

What is the dependency between the Anago franchisee's transfer request and their compliance with the franchise agreement?

Accepted Answer

notice of the assignment and assumption, You agree within 7 days of a request to sign a release of Us except for any liabilities from which We may not be released under any applicable law. We can also transfer Our stock, engage in public and private securities offerings, merge, consolidate, acquire other businesses including Competitive Businesses, sell all or substantially all of Our assets, borrow money (secured or unsecured), deal in Our assets or otherwise operate Our business without Your consent.

#### **SECTION 10.2 YOUR TRANSFER.**

- (a) **Personal Rights.** The rights and duties stated in this Agreement are personal to You. We have granted the Unit Franchise in reliance on Your business and personal skill, reputation, aptitude and financial capacity. Accordingly, You agree that, unless otherwise expressly permitted by this Agreement, You will not sell, assign, transfer, convey or give voluntarily, involuntarily, directly or indirectly, by operation of law or otherwise (collectively "transfer") any direct or indirect interest in (1) this Agreement, (2) any Account or interest in any Account assigned to You under this Agreement or with respect to which you sign a joinder, or (3) the Unit Franchise without Our prior written consent (that may be granted or withheld by Us in Our sole discretion). However, Our written consent is not required for: (i) a transfer of less than a 5% interest in a publicly held corporation; or (ii) a transfer of all or any part of Your interest to one of Your other original shareholders or partners. A transfer of 25% or more of the voting or ownership interests in Your corporation, partnership or limited liability company, individually or in the aggregate, directly or indirectly, is, for all purposes of this Agreement, considered Your transfer of an interest in this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 49

Does Anago ever instruct franchisees to destroy proprietary materials instead of returning them upon termination?

Accepted Answer

Subfranchisor will immediately turn over to Franchisor in an organized manner all original hard copies of materials, including the Manuals, records, files, instructions, correspondence, all materials related to the System, the operation of the Subfranchise Business, operating an Anago Franchise, including all Authorized Original hard copy Materials, original hard copies of Unit Franchisee files and/or agreements and correspondence, all original hard copies of Client information and Client Accounts (signed contracts), all materials containing any Proprietary Marks or otherwise identifying or relating to the System, materials on the solicitation of prospective Unit Franchisees, and all other materials about the operation of a Franchised Business in Subfranchisor's possession or control, and all copies and any other forms of reproductions of any of these materials (all of which are acknowledged to be the sole and exclusive property of Franchisor) Subfranchisor will retain no copy or record of any of these materials, excepting only Subfranchisor's copy of this Agreement and related agreements and of correspondence between the parties, copies of all Unit

Franchise Agreements with the Unit Franchisees in the Area entered into during the Term, and copies of any other documents that Subfranchisor is required to retain for compliance with any applicable law. Subfranchisor agrees it shall be solely responsible for all expenses associated with the copying of the materials.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 50

Does the Anago FDD include a rider to the Subfranchise Rights Agreement for use in Illinois?

Accepted Answer

# **RIDER TO THE ANAGO FRANCHISING, INC. SUBFRANCHISE RIGHTS AGREEMENT FOR USE IN ILLINOIS**

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 51

Can Anago finance the C-Fee?

Accepted Answer

u agree

to pay Us a fee for our efforts Currently 8% (5% for General Liability & 3% for Workers' Compensation) of monthly Gross Revenues, (subject to change in our discretion), plus \$2.00 per invoice per Client serviced. If You do not obtain insurance through Us, You are still liable for a charge of 2% of Gross Revenues for insurance administration and policy verification.

- (f) **C-Fees.** For the assignment and assumption of any additional Accounts We offer to You and You accept under Subsection 2.1(b), You will pay to Us a non-refundable fee ("C-Fee"). The C-Fee is currently equal to 3.0 times the Gross Monthly Billing of additional Accounts, but we reserve the right, on 30 days' notice to You, to increase it to 5.0 times the Gross Monthly Billing of additional Accounts. The C-Fee and is payable in full at the time of the assumption of the Account or may be financed by Us at Our sole discretion under the Terms listed below in this Section 3.1(f) (Subsections (i) through (xv)).
  - (i) For any additional Account We offer to You and You accept having Gross Monthly Billing of up to and including \$2,000, the C-Fee is payable: (a) 20% upon assumption of the Account; and (b) the balance payable in 11 equal monthly installments including interest at 14% per year.
  - (ii) For any additional Account We offer to You and You accept having Gross Monthly Billing from \$2,001 up to and including \$3,000, the C-Fee is payable: (a) 20% upon assumption of the Account; and (b) the balance payable in 11 or 17 equal monthly installments including interest at 14% per year. Should, for any reason, the Client contract not be renewed after 12 months, and the financing was for 17 months, the remaining balance is immediately due.
  - (iii) For any additional Account We offer to You and You accept having Gross Monthly Billing of \$3,001 and above the C-Fee is repayable as negotiated by the parties as stated in the Account Assignment & Assumption Agreement. For example, if for any reason, the Client contract is not renewed after 12 months, and the financing was for 18 months, the remaining balance would be immediately due.
  - (

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 52

Does the Anago franchise agreement require arbitration before commencing an action in court?

Accepted Answer

You acknowledge that the UNIT FRANCHISEE has, under the Unit Franchise Agreement, agreed to submit disputes to arbitration.

You agree that all disputes arising under or involving this Guaranty shall be submitted to arbitration as described in Section 18.11 of the Unit Franchise Agreement.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 53

For the Anago franchise, what criteria must a franchisee meet to be included in the average annual sales representation?

Accepted Answer

historic representation showing the unaudited Average Annual Sales reported by certain of our direct franchisees ("Franchisees") businesses during our 2021, 2022, 2023, and 2024 fiscal years.

The information in this Item comes from current Franchisees as of December 31, 2021, December 31, 2022, December 31, 2023, and December 31, 2024, respectively. All Franchisees included in this survey have domestic territories that have been opened and continuously operated as franchised business and not corporately held for at least one full year as of the end of the calendar year for which data is reported in this Item 19. The below chart and the table following it reflect data for thirty-six (36) Franchisees representing 86% of the forty-two (42) total Franchisees in 2021, thirty-eight (38) Franchisees representing 90% of the forty-two (42) total Franchisees in 2022, forty (40) Franchisees representing 93% of the forty-three (43) total Franchisees in 2023, and forty (39) Franchisees representing 91% of the forty-three (43) total Franchisees in 2024 that meet the above criteria.

![](_page_53_Figure_1.jpeg)

|  | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Average Annual Sales | $2,398,512 | $2,739,828 | $3,029,925 | $3,363,327 |
| Median Annual Sales | $1,938,635 | $2,190,135 | $2,485,498 | $3,187,641 |
| High | $6,824,947 | $7,702,075 | $8,185,855 | $8,373,146 |
| Low | $292,625 | $556,164 | $332,846 | $136,026 |
| # Within Group | 36 | 38 | 40 | 39 |
| # Above Average | 15 | 16 | 17 | 17 |
| % Above Average | 42% | 42% | 43% | 44% |
# **2. Average Annual Sales by Quartile during 2024**

Set forth below is a historic representation showing the unaudited Average Annual Sales as self-reported by 39 Franchisees businesses during our 2024 fiscal year by quartile.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 53–55)

Question 54

Can the Anago Franchisor provide written approval to waive the in-term non-compete restrictions for the Subfranchisor?

Accepted Answer

y of its employees may have an impact on the Anago franchise System, Franchisor shall have the right to participate in any such action, suit or proceeding and Subfranchisor agrees to cooperate fully with Franchisor's participation.

- (k) Operational Suggestions. Subfranchisor is encouraged to submit suggestions in writing to Franchisor for improving elements of the System, such as products, services, equipment, service format, advertising and any other relevant matters, which will be considered by Franchisor when adopting or modifying standards, specifications and procedures for the System. Subfranchisor agrees that any suggestions made by Subfranchisor under this Agreement are the exclusive property of Franchisor. Franchisor has no obligation to use these suggestions and no obligation to provide compensation for any suggestion. Subfranchisor may not use any suggestions inconsistent with his or her obligations under this Agreement without the written consent of Franchisor.
- (l) Record keeping.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 55

Can the Anago Franchisor provide written approval to waive the post-term non-compete restrictions for the Subfranchisor?

Accepted Answer

cably waived his or her right to make any objection. Subfranchisor agrees that this provision is a material inducement for Franchisor to enter into this Agreement, and any breach of this provision is a material breach of this Agreement. Subfranchisor will take all other steps necessary, at his or her own expense, to protect the Confidential Information and will not divulge Confidential Information either during, or upon the expiration or termination of, this Agreement without the written consent of Franchisor. #### **ARTICLE 7 - TRANSFER OF INTEREST** #### Section 7.1 - Transfer by Franchisor Subfranchisor represents that it has not signed this Agreement in reliance on any particular manager, owner, director, officer or employee remaining with Franchisor in any capacity. Franchisor may change its ownership or form at its discretion. Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 56

What happens if a client sends payments directly to the Anago Subfranchisor's operating account?

Accepted Answer

If any client payments are sent directly from the client to Subfranchisor's or a Unit Franchisee's operating Account, Subfranchisor will immediately notify

Franchisor of the payment receipt with the corresponding deposit slip. Subfranchisor or Unit Franchisee, as applicable, will deposit the payment directly to the Anago Escrow Account for processing. Neither Subfranchisor nor any Unit Franchisee may deposit the payment directly into its own account. A deposit into any account other than the Anago Escrow Account is a default under this Agreement authorizing Franchisor to immediately assume all billing and invoicing, in which event all Clients in the Area will be notified to forward all invoice payments directly to Franchisor.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 57

What happens if a court or arbitrator determines that the prohibition of class-wide arbitration is unenforceable for an Anago dispute?

Accepted Answer

We and you agree that arbitration will be conducted on an individual basis and that an arbitration proceeding between us and our affiliates, or our and their respective shareholders, officers, directors, agents, and employees, on the one hand, and you (or your owners, guarantors, affiliates, and employees), on the other hand, may not be: (i) conducted on a class-wide basis, (ii) commenced, conducted or consolidated with any other arbitration proceeding, or (iii) brought on your behalf by any association or agent. Notwithstanding the foregoing, if any court or arbitrator determines that all or any part of the preceding sentence is unenforceable with respect to a dispute, controversy or claim that otherwise would be subject to arbitration under this Section, then all parties agree that this arbitration clause shall not apply to that dispute, controversy or claim and that such dispute, controversy or claim shall be resolved in a judicial proceeding in accordance with the dispute resolution provisions of the Agreements.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 58

What happens if I fail to schedule the minimum number of Client Bids that Anago requires?

Accepted Answer

Under your Anago Subfranchise Rights Agreement, you will be licensed and granted the right to operate your Subfranchise in those counties as defined in the Anago Subfranchise Rights Agreement (the "Area") during the term of the Subfranchise Rights Agreement so long as you are not in default of the agreement. The area granted will include a population delineated by the boundaries of a standard, statistical metropolitan area, sufficient to encompass the specified

population (with a minimum population of 500,000), in accordance with the Subfranchise Program purchased. You and we will agree on the defined Area prior to signing the Anago Subfranchise Rights Agreement. However, if you fail to schedule the minimum number of Client Bids that we require then, in addition to our other rights under the Subfranchise Rights Agreement, we may reduce or redefine the Area upon notice to you.

Source: Item 12 — TERRITORY (FDD pages 36–38)

Question 59

What happens if an Anago franchisee attempts to transfer their interest in the franchise in violation of the agreement?

Accepted Answer

If You are in default We may, at Our option, terminate all rights granted to You under this Agreement, without affording You an opportunity to cure the default, effective immediately upon notice to You, upon the occurrence of any of the following Events of Default:

- (f) If You, contrary to this Agreement, purport to encumber or transfer any rights or obligations under this Agreement (including transfers of any interest in You), without Our written consent;

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 60

What happens if the Anago franchisee is in default of any agreement with the franchisor when requesting a transfer?

Accepted Answer

If You are in default We may, at Our option, terminate all rights granted to You under this Agreement, without affording You an opportunity to cure the default, effective immediately upon notice to You, upon the oc

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 61

What happens if an Anago franchisee selects to finance a portion of the Initial Fee?

Accepted Answer

Should You decline all Initial Business offered during the Initial Offering Period, then We have the right to terminate this Agreement. If We terminate this Agreement, We will keep all fees You paid to Us and, if You financed a portion of the Initial Fee, the unpaid portion will be forgiven. If We do not exercise the right to terminate this Agreement and You have financed a portion of the Initial Fee, the

unpaid balance becomes immediately payable.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 62

What happens if an Anago franchisee selects to pay the entire Initial Fee in cash?

Accepted Answer

- (iv) If the C-Fee is paid in full at the time of assumption, the C-Fee will be reduced by 15%.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

Question 63

What happens if the office supplies do not support the image and positioning of the Anago system?

Accepted Answer

We will only allow office supplies that support the image and positioning of the System in the marketplace.

You agree to the importance of image and positioning to the Anago System and agree to use only the supplies we specify or otherwise approve.

The term "supplies" refers to brochures, flyers, forms, proposal folders, 3-ring binders, presentation materials, whether electronic or otherwise, and other miscellaneous items.

Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 19–22)

Question 64

What happens if an Anago subfranchisee fails to meet the minimum annual Client Marketing Spend requirement?

Accepted Answer

accounting or inventory control procedures; and resolving operating problems you encounter.

#### **ADVERTISING PROGRAMS**

You will be subject to an annual minimum Client Marketing Spend. To comply with the Client Marketing Spend, you will be required to spend at least \$50,000 per calendar year on marketing Anago services to the existing and potential clients in the Area and provide us with

satisfactory proof of these expenditures in the form requested by us. If you fail to meet the above requirements, you must pay us the difference between the required Client Marketing Spend and the portion of the Client Marketing Spend you actually spent during the applicable calendar year. We may use such amounts for any purpose in our sole discretion. The Client Marketing Spend requirement will be prorated for each partial calendar year of the term of the Subfranchise Ri

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)

Anago 2025 FDD FAQ