Is an Anago franchisee obligated to accept initial business offered?
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 franchisee is not required to accept the initial business offered to them. Anago's obligation is only to offer initial business within a specific timeframe after certain conditions are met. These conditions include completing the Anago Orientation Program with a score of 85% or better on the business operations examination, being certified as qualified to operate an Anago Unit Franchise, and providing proof of necessary business licenses, insurance, and equipment.
If an Anago franchisee declines an offer of initial business, they must sign a written statement confirming their refusal. Failure to sign this statement is considered a breach of the franchise agreement, potentially leading to termination. Declining an offer fulfills Anago's obligation to provide that portion of initial business within the offering period.
However, if a franchisee declines all initial business offered during the initial offering period, Anago has the right to terminate the franchise agreement. If Anago chooses to terminate the agreement under these circumstances, they retain all fees paid by the franchisee. If the franchisee financed a portion of the initial fee, the unpaid portion will be forgiven upon termination by Anago. If Anago does not terminate the agreement, the unpaid balance of the financed initial fee becomes immediately due.