In the event of the death of an Anago franchisee owner, how long does the franchisee have to transfer the deceased's interests to an approved transferee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) If any individual referenced in paragraph (a) above dies during the Term, the interests of that individual in a corporate, partnership or limited liability company Unit Franchisee (or in any owner of the Unit Franchisee) or in this Agreement are required to be transferred within 6 months of the death to an approved transferee in accordance with the terms of this ARTICLE.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if an owner with a 25% or greater interest in the franchise dies, their interests must be transferred to an approved transferee within 6 months of the death. This requirement applies to interests in a corporate, partnership, or limited liability company franchisee, or in the franchise agreement itself.
This means that the deceased owner's estate or legal representative has a limited time frame to find a qualified buyer and complete the transfer process. The transferee must be approved by Anago, which typically involves demonstrating business and personal skills, a good reputation, and sufficient financial capacity. The transferee will likely need to undergo an interview and complete Anago's application process.
It is important to note that the transferee may also be required to sign Anago's then-current franchise agreement, which could contain terms that are materially different from the original agreement. Additionally, a transfer fee may be required, which is the greater of $2,000 or 10% of the sales price, although this fee is waived for transfers to a spouse or child, who will instead pay a $250 administrative fee. Failing to meet these requirements within the specified timeframe could result in Anago terminating the franchise agreement.