What does the charge cover if an Anago franchisee does not obtain insurance through the franchisor?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (p) Insurance Coverage (Failure of Franchisee to maintain coverage). If You fail to maintain the insurance required by this Agreement, We may obtain the required insurance on your behalf (though we have no obligation to do so) and charge You the insurance program fees described in Section 3.1(e).
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if a franchisee fails to maintain the required insurance, Anago has the option to obtain the necessary insurance on the franchisee's behalf. In this case, the franchisee will be charged the insurance program fees as described in Section 3.1(e).
This means that if an Anago franchisee does not maintain the insurance coverage required by the franchise agreement, Anago can step in and secure the insurance themselves. However, the franchisee will be responsible for covering the costs associated with this insurance, which are referred to as the "insurance program fees".
It is important for prospective Anago franchisees to understand the insurance requirements and the potential costs of failing to maintain adequate coverage. Franchisees should clarify what the "insurance program fees" entail and how they are calculated to avoid unexpected expenses. Maintaining the required insurance is crucial not only for compliance with the franchise agreement but also for protecting the franchisee's business and assets.