Considering the restrictions on suppliers (Item 8), what are the procedures for an Anago franchisee to request a waiver of these restrictions in exceptional circumstances?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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 or lease equipment, supplies, advertising materials, or other products/services for use within the Anago system from a supplier that is not already approved, they must submit a written request for approval to Anago. Alternatively, the franchisee can have the unapproved supplier submit the request directly to Anago.
Anago has the right to inspect the supplier's facilities and require samples for testing as a condition of approval. The franchisee is responsible for covering the costs associated with the inspection and testing processes. Anago also reserves the right to re-inspect approved suppliers and sample their products periodically, with the supplier bearing the expense. Approval can be revoked if the supplier fails to continue meeting Anago's standards and specifications.
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 remain confidential, as they have been developed through extensive work and time and are considered proprietary information. This means a franchisee will not know the exact standards a supplier must meet, adding a layer of uncertainty to the approval process.