What article governs the rights and obligations of both parties upon termination or expiration of the Anago franchise agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE 12 - YOUR OBLIGATIONS UPON TERMINATION OR EXPIRATION
Upon the termination or expiration of this Agreement, the Sections of ARTICLE 12 apply to the rights and obligations of the parties.
SECTION 12.1 CEASE OPERATIONS.
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.
SECTION 12.2 PAYMENT OF OUTSTANDING AMOUNTS.
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, Article 12 outlines the obligations of both parties upon the termination or expiration of the franchise agreement. Specifically, Section 12.1 requires the franchisee to immediately cease operating the Anago Unit Franchise, which includes discontinuing the use of Anago's proprietary marks and system. The franchisee is also prohibited from representing themselves as a current or former franchisee or affiliating with the Anago system in any way. This extends to ceasing the use of all related stationery, signage, and other materials containing Anago's proprietary marks.
Section 12.1 further specifies that franchisees must stop using websites, social media accounts, and other identifiers associated with the Unit Franchise. Upon request, the franchisee must transfer control of these identifiers to Anago. Section 12.2 addresses the payment of outstanding amounts, stating that Anago may retain all fees paid under the agreement, except for refunds expressly required within the agreement. Additionally, within 10 days of the termination or expiration date, the franchisee must pay all outstanding amounts owed to Anago, its affiliates, and other creditors.
These provisions ensure that upon termination or expiration of the franchise agreement, the franchisee promptly disassociates from the Anago brand and fulfills all outstanding financial obligations. This protects Anago's brand identity and financial interests while providing clear guidelines for the franchisee's responsibilities during the transition. Franchisees should carefully review Article 12 to fully understand their obligations upon termination or expiration of the agreement.