Considering the restrictions on suppliers (Item 8), what are the procedures for an Anago franchisee to request a review of the designated supplier's pricing?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
er. We in no way warrant the use of approved vendors or supplies when they are utilized outside the Anago System. We may designate a supplier where a Franchisee may go and buy supplies and charge the supplies to the House Account. If you use the House Account to purchase supplies and elect to have your purchases deducted 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. We may also require as a condition to Our approval, that the supplier present satisfactory evidence of insurance, for example, product liability insurance, protecting Us and Our Unit Franchisees against all claims from the use of the item within the System.
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if a franchisee wants to purchase equipment, supplies, advertising materials, or other products or services for use within the Anago system from a supplier that is not already approved, the franchisee must submit a written request for approval to Anago. Alternatively, the supplier can submit the request themselves.
Anago has the right to inspect the supplier's facilities and require samples for testing, either at Anago's facilities or an independent, certified laboratory. The franchisee is responsible for covering the reasonable costs of the inspection and the actual cost of testing. Anago also reserves the right to re-inspect approved suppliers and sample their products periodically at the supplier's expense. Approval can be revoked if the supplier fails to continue meeting Anago's standards and specifications.
Anago may also require the supplier to provide satisfactory evidence of insurance, such as product liability insurance, to protect Anago and its Unit Franchisees from claims related to the use of the supplier's products within the system. Anago will notify the franchisee in writing within 30 days of the approval or disapproval of the supplier. However, Anago's specific criteria for supplier approval are considered confidential and are not disclosed to franchisees or proposed suppliers, as they have been developed through extensive work and time.