Is an Anago franchisee obligated to accept additional accounts offered by the franchisor?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
You are under no obligation to accept Initial Business offered. Our obligation is only to "offer" Initial Business to You within the Initial Offering Period. Should You decline an offer, You must sign a written statement stating that You have declined the offer. A refusal to sign a statement of decline is a material breach under this Agreement and We then have the option of immediately terminating this Agreement. All declined offers will satisfy Our obligation to offer those portions of Initial Business within the Initial Offering Period. Should You decline all Initial Business offered during the Initial Offering Period, then We have the right to terminate this Agreement. If We terminate this Agreement, We will keep all fees You paid to Us and, if You financed a portion of the Initial Fee, the unpaid portion will be forgiven. If We do not exercise the right to terminate this Agreement and You have financed a portion of the Initial Fee, the
unpaid balance becomes immediately payable.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a new franchisee is under no obligation to accept the initial business offered to them. Anago's obligation is only to offer initial business to the franchisee within the initial offering period.
Should the franchisee decline an offer, they must sign a written statement confirming their refusal. A refusal to sign this statement is considered a material breach of the agreement, potentially leading to immediate termination by Anago. If a franchisee declines all initial business offers during the initial offering period, Anago retains the right to terminate the agreement.
If Anago terminates the agreement under these circumstances, they will keep all fees paid by the franchisee. However, if a portion of the initial fee was financed, the unpaid portion will be forgiven. If Anago chooses not to terminate the agreement, the unpaid balance of the financed initial fee becomes immediately payable.
This policy provides a new Anago franchisee with the flexibility to evaluate the initial business opportunities presented and decline them if they do not align with their business goals or capabilities. However, it also carries the risk of termination if all offers are rejected, highlighting the importance of careful consideration and communication with Anago during the initial offering period.