What actions by an Anago franchisee or their employees could result in Anago having no obligation to replace a lost Initial Account?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
(iii) If You lose an Initial Account or an Initial Account transfer for the following reasons:
- (a) You or Your employee's theft or willful destruction of a Client's property;
- (b) Abandonment of service without notice to Us;
- (c) Use or selling of illegal drugs while performing services;
- (d) Use of alcoholic beverages while performing services;
- (a) You or Your employee's theft or willful destruction of a Client's property;
(e) Use of the Client's equipment without approval of the Client;
(f) Change of the service terms without notifying us;
(g) Continuing to service an Account after We have terminated the Account;
(h) Your failure to meet background requirements that may be requested by the Client; or
(i) Any other Event of Default has occurred, whether caused by you or your employees; then, We have no obligation to replace the Account and may elect to terminate this Agreement and keep all fees You paid, with the right to demand immediate payment of all amounts owed to Us.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago is not obligated to replace a lost Initial Account if the loss is due to specific actions or events caused by the franchisee or their employees. These actions include theft or willful destruction of a client's property, abandonment of service without notice to Anago, use or selling of illegal drugs while performing services, and use of alcoholic beverages while performing services.
Additional actions that would relieve Anago of the obligation to replace the account include using the client's equipment without approval, changing the service terms without notifying Anago, continuing to service an account after Anago has terminated it, or failing to meet background requirements requested by the client. Furthermore, if any other Event of Default occurs, whether caused by the franchisee or their employees, Anago is not obligated to replace the account.
In such cases, Anago has the option to terminate the franchise agreement and retain all fees paid by the franchisee, while also demanding immediate payment of all amounts owed to them. This provision highlights the importance of franchisees and their employees adhering to ethical and operational standards to avoid potential loss of accounts and possible termination of the franchise agreement.