Does AFI have an obligation to enforce any provision of the Anago agreement?

According to the 2025 Anago FDD, AFI (Anago Franchising, Inc.) has the right, but not the obligation, to enforce any provision of the Anago agreement as though it were a party to the agreement. This applies specifically to provisions related to dispute resolution and the payment of fees by the Unit Franchisee to the Subfranchisor. This means AFI can choose to step in and take action to ensure compliance with these specific parts of the agreement, but they are not required to do so.

This discretion allows AFI to protect its interests in the Anago franchise system without being automatically burdened with enforcement responsibilities. For a prospective Anago franchisee, this means that while AFI has the power to enforce certain aspects of the agreement, it is not guaranteed. The subfranchisor remains primarily responsible for ensuring compliance, but AFI can intervene if necessary to protect its interests, particularly regarding dispute resolution and fee payments.

This arrangement is not uncommon in franchising, where the franchisor often retains certain enforcement rights to maintain brand standards and protect the overall system. However, the day-to-day enforcement typically falls to the subfranchisor. Therefore, franchisees should understand that while AFI can step in, they should primarily look to the subfranchisor for the enforcement of most agreement terms. Franchisees should clarify with both the franchisor and subfranchisor their respective roles and responsibilities in enforcing the franchise agreement to fully understand their obligations and rights.