In the event that a term, specification, standard, or operating procedure required by Anago is deemed invalid or unenforceable, what right does Anago have?

Based on the 2025 FDD, Anago can terminate all rights granted to the franchisee under the agreement if the franchisee fails or refuses to comply with any mandatory specification, standard, or operating procedure required by Anago in the agreement, the manual, or otherwise in writing, regarding the cleanliness or sanitation of the Anago Unit Franchise. This termination is effective immediately upon notice to the franchisee and does not require Anago to provide an opportunity for the franchisee to correct the default.

This provision gives Anago significant power to enforce its standards and procedures. A prospective franchisee should understand that non-compliance, even if unintentional, can lead to immediate termination of the franchise agreement. This underscores the importance of carefully reviewing and understanding all requirements outlined in the franchise agreement and the Anago Unit Franchise Operating Manual.

It is important for a potential Anago franchisee to seek clarification from Anago regarding any ambiguous or potentially burdensome requirements before signing the franchise agreement. Understanding the specific standards and procedures, and the potential consequences of non-compliance, is crucial for making an informed decision about investing in an Anago franchise.