In addition to equitable relief, what other rights does Anago have in the event of a breach of the Unit Franchise Agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
If You default in performing any of Your obligations under this Agreement, We have the
right (but not the obligation) to perform Your obligations and be reimbursed by You for the actual costs of so performing, together with accrued interest permitted under this Agreement on overdue amounts. Interest accrues beginning on the 10th day after Our demand for reimbursement.
If any default is not cured within the applicable cure period, or any longer time as applicable law requires, all Your rights under this Agreement terminate without additional notice to You effective immediately upon the expiration of the applicable cure period or any longer time as applicable law requires. In addition to the Events of Default specified in Sections 11.2, 11.3 and 11.4, an Event of Default occurs if You fail to comply with any of the requirements imposed by this Agreement, as it may be revised or supplemented by the Manual, or to carry out this Agreement in good faith. You have the burden of proving You properly and timely cured any default, to the extent a cure is permitted under this Agreement.
Upon the termination or expiration of this Agreement, the Sections of ARTICLE 12 apply to the rights and obligations of the parties.
You will immediately cease to operate the Anago Unit Franchise using the Proprietary Marks or System. You will not, directly or indirectly, use any of the Proprietary Property nor represent yourself as a present or former Unit Franchisee of Us or in any other way affiliate yourself with the System. You will immediately cease using all stationery, signage and other materials containing the Proprietary Marks.
You will cease and desist from using websites, social media accounts, and other printed and electronic identifiers associated with the Unit Franchise or with which the Unit Franchise has been identified. On request, You will direct all persons responsible for or controlling such identifiers to transfer them to Us.
We may retain all fees paid under this Agreement except for refunds expressly required in this Agreement. In addition, within 10 days after the effective date of the termination or expiration, or any later dates as We determine that amounts are due to Us, You must pay to Us all amounts owed to Us, Our Affiliates and Your other creditors that are then unpaid.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, besides equitable relief, Anago has additional rights if a franchisee breaches the Unit Franchise Agreement. Anago can perform the franchisee's obligations if they default and seek reimbursement for the costs, including accrued interest. Interest begins accruing 10 days after Anago demands reimbursement.
Anago can terminate the agreement if the franchisee does not cure a default, effective immediately after the cure period expires, or any longer time as applicable law requires. Events of default include failing to comply with the agreement's requirements or not carrying out the agreement in good faith. The franchisee bears the burden of proving they properly cured any default.
Upon termination or expiration of the agreement, the franchisee must immediately cease operating the Anago Unit Franchise using Anago's marks and system. They must also stop using proprietary property and representing themselves as a current or former franchisee. The franchisee must discontinue using websites, social media accounts, and other identifiers associated with the franchise and transfer them to Anago upon request. The franchisee must also pay all outstanding amounts owed to Anago, its affiliates, and other creditors within 10 days of termination or expiration.