What conditions can Anago place on the approval of a supplier?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
ucted from your statement each month, we will charge you a financing fee of 5.25% of the amount charged.
- (c) Approval of New Specifications and Suppliers. If You propose to purchase or lease any equipment, supplies, advertising materials, or other products or services, for use within the Anago System, from an unapproved supplier, You must submit to Us a written request for approval, or request the supplier to do so. We will have the right to require, as a condition of Our approval that Our representatives be permitted to inspect the supplier's facilities, and that samples from the supplier be delivered, at Our option, either to Us or to an independent, certified laboratory We designate for testing. We are not liable for damage to any sample that results from the testing
process. You will pay a charge not to exceed the reasonable cost of the inspection and the actual cost of the testing. We reserve the right, at Our option, to re-inspect the facilities and products of any approved supplier and continue to sample the products at the supplier's expense and to revoke approval upon the supplier's failure to continue to meet Our standards and specifications.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago has the right to set certain conditions when approving a new supplier. If a franchisee proposes using a new supplier, Anago may require an inspection of the supplier's facilities. Anago can also request samples from the supplier for testing, either by Anago or an independent, certified laboratory. The franchisee is responsible for covering the costs of these inspections and tests.
Anago retains the right to re-inspect the facilities and products of any approved supplier and continue to sample the products at the supplier's expense. If a supplier fails to meet Anago's standards and specifications, Anago can revoke the approval. Anago may also require the supplier to provide satisfactory evidence of insurance, such as product liability insurance, to protect Anago and its franchisees from claims related to the use of the supplier's products within the Anago system.
Furthermore, Anago can condition supplier approval on requirements related to delivery frequency, service standards, warranty policies (including prompt attention to complaints), and purchase concentration. Approvals can also be temporary, pending further evaluation of the supplier. These conditions allow Anago to maintain quality control and protect the brand's reputation by ensuring suppliers meet specific standards and provide adequate support to franchisees.