What constitutes an 'Affiliate' of the Anago franchisor?

According to Anago's 2025 Franchise Disclosure Document, an 'Affiliate' is defined as an entity that either controls, is controlled by, or is under common control with Anago. This definition is important for prospective subfranchisees to understand because it clarifies the scope of Anago's influence and potential liabilities.

In practical terms, this means that any company that Anago owns, that owns Anago, or that is owned by the same entity that owns Anago, is considered an affiliate. This relationship can have implications for various aspects of the subfranchise agreement, including vendor relationships, national accounts, and compliance with anti-terrorism laws.

For example, Anago or its affiliates may be designated as the sole vendor for certain products or services, and Anago may derive revenue from these purchases. Subfranchisees are required to purchase these goods and services from the approved vendor. Additionally, any violation of anti-terrorism laws by Anago's affiliates could potentially lead to the termination of the subfranchise agreement. Therefore, understanding the scope of 'Affiliate' is crucial for assessing the overall risks and benefits of investing in an Anago subfranchise.