What costs are the Anago franchisee responsible for when requesting approval of a new supplier?
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 from an unapproved supplier, you must first submit to us a written request for approval, or request the supplier to do so itself. We 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 will not be liable for damage to any sample that may result 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 may also require as a condition to our approval, that the supplier present satisfactory evidence of insurance, for example, product liability insurance, protecting us, our subfranchisors and Unit Franchisees from all claims from the use of the item within the System. 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 will notify you in writing within 30 days of the approval or disapproval of the supplier. Our criteria for supplier approval are not available to you or proposed suppliers, as we and our predecessors and affiliates have developed these criteria through the expenditure of extensive work and time and the criteria are considered confidential information.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if a franchisee proposes using a new supplier, Anago may require its representatives to inspect the supplier's facilities and test samples. The franchisee is responsible for covering the costs associated with these inspections and tests. Specifically, the franchisee will pay a charge not exceeding the reasonable cost of the inspection and the actual cost of the testing.
Anago maintains the right to re-inspect the facilities and products of any approved supplier and continue sampling the products. These re-inspections and sampling are conducted at the supplier's expense, not the franchisee's, to ensure the supplier continues to meet Anago's standards and specifications. Anago will notify the franchisee in writing within 30 days of the approval or disapproval of the supplier.
It is important to note that Anago's criteria for supplier approval are considered confidential and are not disclosed to franchisees or proposed suppliers. This is because Anago has developed these criteria through significant investment of time and resources. Prospective franchisees should be aware of these potential costs and restrictions when considering alternative suppliers for their Anago franchise.