Is Anago currently an approved vendor for any particular product or service?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
cts and services in the Manuals or otherwise in writing.
For any products or services for which we do not then have an approved or designated vendor, you may use any vendor that meets our specifications, as set forth in the Manuals. However, we reserve the right to require you and your Unit Franchisees to purchase or lease computers and all other products or services used or required to be used in your respective businesses only from manufacturers, contractors, distributors, and other suppliers (collectively, "vendors") that we approve or designate and about whom we notify you in the Manuals or otherwise in writing. We may also determine the terms under which vendors provide products or services to your Anago Subfranchise Rights Business and to Anago Unit Franchisees, and the distribution methods for any goods or services provided to or used by vendors of products or services. For any product or service for which we have approved or designated a vendor, you must purchase and require your Unit Franchisees to purchase all such goods and services only from the approved or designated vendor for that product or service, under terms, in the manner, and from the source we designate. In our discretion, there may be only one approved or designated vendor for any particular product or service, and we and our affiliates may be a, or the only, vendor and derive revenue from your and your Units Franchisee's purchases. We and our affiliates may use any such revenue as we or they determine, without restriction. We and our affiliates are not currently approved vendors for any particular product or service, but we do act as the intermediary between you and the designated insurance carrier with respect to the purchase of the required insurance.
In approving suppliers for the System, we typically, but are not required to, require that the
supplier be nationally or regionally recognized, and we may take into any factors that we believe to be relevant, including, for example, the price and quality of the products or services, the vendor's frequency of delivery, the vendor's standards of service and reputation in the community, and the reliability of the supplier. We may concentrate purchases with 1 or more suppliers to obtain, but we do not necessarily guarantee, the lowest prices and/or the best advertising support and/or services for any group of Anago Subfranchisors, Anago Unit Franchisees or company/affiliateowned units within the System. Approval of a supplier may be temporary, pending our additional evaluation of the supplier. If we later disapprove a supplier, we will timely notify you in writing of the disapproval. You must cease purchasing from that supplier within a reasonable time (but in any event, within 30 days) after your receipt of our notice of disapproval.
We may, at our option, arrange with certain vendors to collect or have our affiliates collect costs and expenses associated with products and services they provide to you and, in turn, pay the vendor, on your behalf, for such products or services. If we choose to do so, you must allow us or our designated affiliates to auto debit your escrow account for such amounts in the same manner and using the same authorization that you grant us with respect to payment of Royalty and other fees. We currently act as collection agent for the website creation and maintenance vendor and the designated insurance companies.
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, while Anago itself is not currently an approved vendor for any particular product or service, it does act as an intermediary between the franchisee and the designated insurance carrier for required insurance. Anago also requires franchisees to purchase or lease computer equipment from Anago or its designee, according to specifications that may change during the Subfranchise Rights Agreement term. Anago is the only approved supplier for the NBDS System and also requires franchisees to use designated internet vendors for website creation, maintenance, and email/web hosting.
This means that as an Anago franchisee, you will be obligated to obtain insurance through Anago's designated carrier and purchase or lease computer equipment and related software from Anago or its approved sources. You must also use Anago's designated internet vendors for website and related services. While franchisees can propose new suppliers, Anago retains the right to inspect the supplier's facilities and products, and the criteria for supplier approval are considered confidential.
Anago may derive income from franchisee purchases through rebates from suppliers. In the fiscal year ending December 31, 2023, Anago received $280,409.29, or 2.98% of its total revenue ($9,418,968), from required franchisee purchases of branded items. These required purchases and leases are estimated to be 3% - 5% of the initial cost to establish the Anago Subfranchise Rights Business and 0.5% - 1% of total annual operating expenses.
Prospective franchisees should be aware that Anago reserves the right to change approved suppliers and introduce new requirements, and franchisees must comply with these changes. While there are currently no mandatory purchasing cooperatives, Anago may establish them in the future, and participation would be required if one is established in the franchisee's region. It is important for potential franchisees to consider these restrictions and potential costs when evaluating the Anago franchise opportunity.