What is the duration of each Successor Anago Unit Franchise Agreement term?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) You are granted unlimited options to obtain a Successor Anago Unit Franchise Agreement for Terms of 5 years each provided the following conditions are met at the time the option is exercised and immediately before the beginning of the Succeeding Term, unless another time is specified below:
- (i) You must give Us written notice of Your intention to exercise the option by submitting Your application at least 9 months but not more than 12 months before the end of the Term;
- (ii) You cannot be in default of any provision of this Agreement or any other agreement between You and Us or Our Affiliates;
- (iii) You, within 30 days before the end of the Term, must sign and deliver to Us a Successor Anago Unit Franchise Agreement that may materially differ from this Agreement;
- (iv) You must comply with all other requirements We impose under the
Successor Anago Unit Franchise Agreement upon its signing, except that there is no new Initial Fee or renewal fee; and
- (v) You must sign a general release of all claims against Us and Our Affiliates, and our and their respective officers, directors, shareholders, agents and employees except for liabilities that We may not require a release from under applicable state law.
- (b) If You have not met all of the conditions stated in Subsection 16.2(a), We may elect not to enter into a Successor Anago Unit Franchise Agreement. You may, within 5 days of receipt of notice from Us that We have elected not to enter into a Successor Anago Unit Franchise Agreement, submit a notice to us indicating that you intend to sell your Unit Franchise. Following Our receipt of such notice, you will have at least 180 days (if necessary, we will extend the Term of this Agreement in order to provide you at least 180 days to sell Your Unit Franchise, unless We have grounds to otherwise terminate this Agreement) to sell Your Unit Franchise, subject to Our right of first refusal and our right to approve of any transferee. This transfer must be in compliance with the provisions of Subsection 10.2(e) and all the other applicable provisions of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, franchisees are granted unlimited options to obtain a Successor Anago Unit Franchise Agreement. Each term of the Successor Anago Unit Franchise Agreement is for 5 years.
To be eligible for a Successor Anago Unit Franchise Agreement, franchisees must meet specific conditions. They must provide written notice of their intent to exercise the option between 9 and 12 months before the current term ends. Franchisees must not be in default of any agreements with Anago or its affiliates. Additionally, they must sign and deliver the Successor Anago Unit Franchise Agreement within 30 days before the end of the current term, acknowledging that the new agreement may differ materially from the original.
Other requirements include compliance with all stipulations of the Successor Anago Unit Franchise Agreement upon signing, with the exception of a new initial fee or renewal fee. Franchisees must also sign a general release of all claims against Anago, its affiliates, and their respective personnel, except for liabilities that cannot be released under applicable state law. If these conditions are not met, Anago may choose not to enter into a Successor Anago Unit Franchise Agreement, potentially leading to the franchisee having the option to sell their unit franchise within a specified timeframe, subject to Anago's right of first refusal.