Who bears the cost of supplementary hardware or software required for Anago Franchisor's access to the Subfranchisor's electronic reporting system?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Subfranchisor will give Franchisor full and unimpeded 24-hour access, 365 days per year, to Subfranchisor's records, including those which are retained or recorded on any electronic or computer system operated by Subfranchisor.
Franchisor will have access to the electronic reporting through a modem or Internet connection installed within Subfranchisor's computer, and will be supplied with hard copies of data upon request by Franchisor.
Any supplementary hardware or software costs will be borne by Subfranchisor.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Subfranchisor bears the cost of any supplementary hardware or software required for Anago's access to the Subfranchisor's electronic reporting system. Anago requires Subfranchisors to provide financial and business records in specific formats and schedules.
To meet these requirements, Subfranchisors must obtain and use designated computer hardware and software systems, including Anago's proprietary software, at their own expense. This includes installing computerized NBDS management systems and accepting NBDS, which Anago can modify based on business, operations, and marketing conditions. The Subfranchisor is also responsible for entering into software licenses, terms of use, and maintenance agreements, and for paying any associated fees required by Anago or its affiliates.
Furthermore, the Subfranchisor is obligated to replace these systems when Anago deems it necessary, considering factors such as the system's age, operating costs, condition, current and anticipated technology, information used by other Subfranchisors, the needs of the system, and other relevant factors. Failure to use the required computer system and software can result in a material breach of the agreement, potentially leading to termination by Anago. This ensures Anago has consistent and timely access to the Subfranchisor's data, but places the financial burden of maintaining the necessary technology on the Subfranchisor.