What factors does Anago typically consider when approving suppliers for the Anago System?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, when approving suppliers for the Anago System, Anago typically requires the supplier to be nationally or regionally recognized. However, Anago is not required to do so. Anago may also consider factors they believe to be relevant, such as 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.
Anago may concentrate purchases with one or more suppliers to potentially obtain the lowest prices, best advertising support, or services for Anago Subfranchisors, Anago Unit Franchisees, or company/affiliate-owned units within the System, but this is not guaranteed. Supplier approval may be temporary, pending further evaluation, and Anago will provide written notification if a supplier is disapproved, requiring franchisees to cease purchasing from that supplier within a reasonable time, but no more than 30 days after receiving the notice.
Furthermore, Anago may require that samples from the supplier be delivered to them or to an independent, certified laboratory for testing, with the franchisee paying for the inspection and testing costs. Anago may also require suppliers to provide satisfactory evidence of insurance, such as product liability insurance, to protect Anago, its subfranchisors, and Unit Franchisees from claims related to the use of the item within the System. Anago reserves the right to re-inspect the facilities and products of any approved supplier and to sample the products at the supplier's expense, with the ability to revoke approval if the supplier fails to meet Anago's standards and specifications. Anago will notify franchisees in writing within 30 days of the approval or disapproval of a supplier.
It is important to note that Anago's specific criteria for supplier approval are considered confidential information and are not disclosed to franchisees or proposed suppliers, as they have been developed through extensive work and time. For products or services without an approved vendor, franchisees may use any vendor that meets Anago's specifications as outlined in the manuals. However, Anago reserves the right to require franchisees and their Unit Franchisees to purchase or lease computers and other products or services only from vendors approved or designated by Anago.