Is Anago allowed to sell inventory secured by the agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
Based on the 2025 Anago Franchise Disclosure Document, Anago has broad rights regarding the transfer of interests. Specifically, Anago has the right to borrow money (secured or unsecured) and deal in its assets without the franchisee's consent. This indicates Anago can secure its assets, which could include inventory, and deal with those assets as collateral for borrowing.
This means that Anago retains significant control over its assets and business operations, including the ability to use inventory as collateral for financial arrangements. For a prospective franchisee, this highlights the franchisor's financial flexibility and control over the brand's assets. However, the FDD does not explicitly state whether Anago can sell inventory secured by the agreement.
While the FDD specifies Anago's rights to transfer interests and secure assets, it does not directly address the scenario of Anago selling inventory that is secured by an agreement. A prospective franchisee should seek clarification from Anago regarding the specific circumstances under which inventory might be sold and how this could affect the franchisee's operations or supply chain.