What is the condition for the Subfranchisor's consent to the assignment of the Anago Franchise Agreement to the Assignee?

According to Anago's 2025 Franchise Disclosure Document, the Subfranchisor's consent to the assignment of the Anago Franchise Agreement to the Assignee is subject to specific terms and conditions. The Assignor must agree to guarantee the performance of the Assignee's obligations under the Subfranchise Agreement. Additionally, the Assignor must continue to be bound by all the provisions of the Subfranchise Agreement, even after the assignment.

This condition ensures that the original Subfranchisor remains responsible for the obligations outlined in the agreement, even after transferring the rights to the Assignee. This provides Anago with an additional layer of security, as the original Subfranchisor's assets and expertise remain tied to the performance of the franchise.

Furthermore, the Assignor is required to execute Anago's form of personal guaranty simultaneously with the execution of the assignment. This personal guaranty reinforces the Assignor's commitment to ensuring the Assignee fulfills all obligations under the Subfranchise Agreement. This requirement is designed to protect Anago's interests and maintain the integrity of the franchise system by ensuring continued compliance and performance.

In practical terms, a prospective Anago franchisee who wishes to assign their Subfranchise Agreement needs to find an assignee acceptable to Anago and must also be willing to remain liable for the performance of the franchise even after the assignment. This condition could make it more difficult to sell or transfer an Anago franchise, as the original subfranchisor cannot simply walk away from their obligations.