Besides the parties involved in the Anago agreement, who else is considered an intended third-party beneficiary?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Subfranchisor acknowledges and agrees that Franchisor is an intended third-party beneficiary of the Unit Franchise Agreement, including without limitation, the provisions of the Unit Franchise Agreement which relate to dispute resolution and payment of fees by Franchisee to Subfranchisor, and that AFI has the right (but not the obligation) to enforce any provision of the Unit Franchise Agreement as though it were a party thereof.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the franchisor is an intended third-party beneficiary of the Unit Franchise Agreement. Specifically, Anago is a third-party beneficiary to provisions relating to dispute resolution and the payment of fees from the franchisee to the subfranchisor.
This means that Anago has the right, but not the obligation, to enforce any provision of the Unit Franchise Agreement as if it were a party to the agreement. This is especially true for clauses regarding how disputes are handled and how the franchisee pays fees to the subfranchisor.
For a prospective franchisee, this clause means Anago retains some control and oversight over the relationship between the franchisee and subfranchisor. Anago can step in to ensure compliance with the franchise agreement, particularly concerning dispute resolution and fee payments. This arrangement could provide an additional layer of security for Anago, ensuring the integrity of the Anago franchise system.