What defines a 'National Account' according to the Anago franchise agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, Subfranchisor shall refer all National Accounts to Franchisor.
Subfranchisor shall not enter into any contracts with National Accounts without first obtaining Franchisor's written consent.
Franchisor reserves the right to, either itself or through its designee, enter into contracts for the performance of Anago services to National Accounts. wherever or however the National Account is originated. "National Account" means any client or prospective client that, directly or though its affiliates: (i) owns, manages, operates, controls, or is responsible for ten (10) or more locations in your Area; (ii) owns, manages, operates, controls or is responsible for multiple locations, one or more of which is in your Area and one or more of which is outside of your Area; and (iii) requests that we or our affiliates submit or allow us or our affiliates to submit a response to a request for proposals ("RFP") and we determine that you do not meet the National Account's qualifications to submit an RFP response or enter into the contract.
If Franchisor signs a contract with a National Account with locations in Subfranchisor's Area, and it is not prohibited from doing so under its contract with the National Account, Franchisor may provide Subfranchisor the option, on terms and conditions specified by Franchisor and on a non-exclusive basis, to license Unit Franchisees in the Area to perform services for National Account locations within the Area.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a 'National Account' is defined in the agreement as any client or prospective client that meets one of three criteria. First, it includes those who directly or through affiliates own, manage, operate, control, or are responsible for ten or more locations within the franchisee's designated area. Second, it encompasses entities with multiple locations, where at least one is within the franchisee's area and another is outside of it. Finally, a 'National Account' is defined as one that requests Anago or its affiliates to submit a response to a request for proposals (RFP), but Anago determines that the franchisee does not meet the qualifications to submit an RFP response or enter into the contract.
This definition has significant implications for Anago franchisees. Subfranchisors must refer all National Accounts to the Franchisor and cannot independently enter into contracts with them without prior written consent from Anago. This restriction allows Anago to manage larger, multi-location clients centrally, potentially ensuring consistent service standards and pricing across different franchise areas.
However, if Anago secures a contract with a National Account that has locations within a subfranchisor's area, Anago has the option to allow the subfranchisor to license Unit Franchisees in the area to perform services for those locations. This arrangement would be subject to terms and conditions specified by Anago and would be on a non-exclusive basis. This means that while franchisees may have the opportunity to service National Accounts, it is not guaranteed and is subject to Anago's discretion and contractual agreements with the National Account. This aspect highlights the importance of understanding the balance between local business development and the franchisor's management of larger, national clients within the Anago franchise system.