What are the components of the Insurance Program Fees for an Anago franchise if participating in the program?
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 coverage as stipulated in the franchise agreement, Anago has the option to secure the necessary insurance on behalf of the franchisee. Should Anago exercise this option, the franchisee will be responsible for the insurance program fees as detailed in Section 3.1(e) of the agreement.
This means that as an Anago franchisee, maintaining the required insurance is critical. Failure to do so not only puts the franchisee at risk but also allows Anago to step in and obtain coverage, the cost of which will be passed on to the franchisee. While the specific details of what these insurance program fees entail are not described in this excerpt, it is important to note that Anago is not obligated to obtain this insurance, but has the right to do so.
Prospective Anago franchisees should carefully review Section 3.1(e) of the Franchise Agreement to fully understand the components and potential costs associated with the insurance program fees. Understanding these costs is essential for budgeting and financial planning as a franchisee. It would also be prudent to discuss this section with Anago representatives to clarify any uncertainties and ensure a clear understanding of the financial implications related to insurance coverage.