What conditions must be satisfied before Anago offers initial business to a franchisee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Offering Period of Initial Business. We will offer to You Accounts generating Gross Monthly Billing under the Program You select in Subsection 3.1(a) within the time period described, after the conditions described below have been satisfied. These Accounts will not be offered nor will the Initial Offering Period begin until You have satisfied the following conditions:
- (i) You have successfully completed the Anago Orientation Program having obtained an 85% or better on the business operations examination.
- (i) Our orientation officer has certified You as qualified to operate an Anago Unit Franchise.
- (ii) You have signed an orientation acknowledgment in the form attached as Exhibit 1 to this Agreement.
- (iiii) You have proof of all necessary business licenses, tax registrations, insurance and permits and have forwarded copies to Us.
- (iv) You have purchased, leased or currently own the major equipment described in Exhibit 5 and have furnished proof of purchase (for example, serial numbers and sales slips) to Us.
- (vi) You have formed your Corporation or LLC business entity. You have received registration of your fictitious name and EIN number and delivered copies to Our office.
- (vii) You have opened a commercial business checking account in the name of your Corporation or LLC business entity with your fictitious name listed and delivered a voided check to Our office.
You are under no obligation to accept Initial Business offered. Our obligation is only to "offer" Initial Business to You within the Initial Offering Period. Should You decline an offer, You must sign a written statement stating that You have declined the offer. A refusal to sign a statement of decline is a material breach under this Agreement and We then have the option of immediately terminating this Agreement. All declined offers will satisfy Our obligation to offer those portions of Initial Business within the Initial Offering Period. Should You decline all Initial Business offered during the Initial Offering Period, then We have the right to terminate this Agreement. If We terminate this Agreement, We will keep all fees You paid to Us and, if You financed a portion of the Initial Fee, the unpaid portion will be forgiven.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, before Anago offers initial business to a new franchisee, several conditions must be met. These conditions ensure that the franchisee is adequately prepared and equipped to operate an Anago franchise. Meeting these requirements is essential for the franchisee to receive accounts generating Gross Monthly Billing under the program they selected.
First, the franchisee must successfully complete the Anago Orientation Program and achieve a score of 85% or better on the business operations examination. Additionally, an Anago orientation officer must certify the franchisee as qualified to operate an Anago Unit Franchise. The franchisee is also required to sign an orientation acknowledgment.
Furthermore, the franchisee must provide proof of all necessary business licenses, tax registrations, insurance, and permits to Anago. They must also have purchased or leased the major equipment specified in Exhibit 5 of the franchise agreement and furnish proof of purchase, such as serial numbers and sales slips. The franchisee needs to have formed their Corporation or LLC business entity, received registration of their fictitious name and EIN number, and provided copies to Anago. Finally, they must open a commercial business checking account in the name of their business entity with the fictitious name listed and deliver a voided check to Anago's office.
It is important to note that the franchisee is not obligated to accept the initial business offered by Anago. However, if a franchisee declines an offer, they must sign a written statement confirming their declination. Refusal to sign this statement constitutes a material breach of the agreement, potentially leading to termination. If the franchisee declines all initial business offered during the Initial Offering Period, Anago has the right to terminate the agreement, retaining all fees paid. However, if a portion of the Initial Fee was financed and Anago terminates the agreement, the unpaid portion will be forgiven.