Does AFI owe a fiduciary obligation to Anago subfranchisors or unit franchisees for administering the advertising fund?

According to Anago's 2025 Franchise Disclosure Document, AFI (presumably Anago Franchising, Inc.) does not owe a fiduciary obligation to Anago subfranchisors or unit franchisees regarding the administration of the advertising fund, or for any other reason. This means that AFI is not legally bound to act in the best interests of its subfranchisors or unit franchisees when managing the advertising fund.

This lack of fiduciary duty gives Anago greater discretion in how the advertising fund is managed and spent. While this might allow for more flexibility, it also means that subfranchisors and unit franchisees have less legal recourse if they believe the funds are being mismanaged or used ineffectively.

It is important for prospective Anago franchisees to understand this aspect of the franchise agreement. While a statement of operations of the fund, if developed, will be prepared annually by an independent public accountant selected by Anago, the absence of a fiduciary duty means franchisees have limited means to challenge Anago's decisions regarding the fund's use.