factual

Is Anago the only approved supplier for the NBDS System?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

We require you to purchase or lease the computer equipment in accordance with our specifications, from us or our designee, which specifications are subject to change throughout the term of your Subfranchise Rights Agreement. We currently require you to use certain hardware and software systems designated by us, pursuant to that certain NBDS License Agreement (in the form attached as Exhibit D to the Disclosure Document) which you and we will enter into.

We have the right to supplement, improve and otherwise change the System at any time and for any reason, and you must comply with all such requirements, including offering and selling new or different products or services specified by us and discontinuing the offer and sale of products and services we no longer approve.

Specifications; Required and Approved Suppliers

To help retain the uniform and high standards necessary to maintain and enhance the goodwill of the System and acceptance in your market, we provide specifications and/or required suppliers for the purchase or lease of certain items, which each Subfranchisor currently is required to retain to provide support services in connection with certain software. We are the only approved supplier for the NBDS System. Specifications may include standards for enhancing the System's image and minimum standards for safety, appearance and other factors. We also currently require that you use our designated internet vendors in connection with the creation and maintenance of your website, and email/webhosting. We will communicate specifications for required or permitted products and services in the Manuals or otherwise in writing.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)

What This Means (2025 FDD)

According to Anago's 2025 Franchise Disclosure Document, Anago franchisees are required to use certain hardware and software systems designated by Anago, pursuant to the NBDS License Agreement. Anago is the only approved supplier for the NBDS System.

This means that if you become an Anago franchisee, you must acquire the NBDS system directly from Anago. You do not have the option to source this system from alternative suppliers. This requirement ensures uniformity across the Anago franchise system, but it also means you are dependent on Anago for this essential component of your business.

While Anago is the only approved supplier for the NBDS system, franchisees may be able to use vendors that meet Anago's specifications for products or services for which Anago does not have an approved or designated vendor. However, Anago reserves the right to require franchisees to purchase or lease computers and all other products or services used in their businesses only from vendors that Anago approves or designates. Anago may also determine the terms under which vendors provide products or services to Anago Subfranchise Rights Businesses and to Anago Unit Franchisees, and the distribution methods for any goods or services provided to or used by vendors of products or services.

For any product or service for which Anago has approved or designated a vendor, franchisees must purchase all such goods and services only from the approved or designated vendor for that product or service, under terms, in the manner, and from the source Anago designates. In Anago's discretion, there may be only one approved or designated vendor for any particular product or service, and Anago and its affiliates may be a, or the only, vendor and derive revenue from your and your Units Franchisee's purchases.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.