Does an Anago franchisee have the right to grant a subfranchise?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
"Area" means the Subfranchisor's area of responsibility where Subfranchisor may sell Franchises as stated in Section 1.2 and as identified in the Data Sheet attached to this Agreement.
(f) In recruiting prospective franchisees, Subfranchisor shall screen franchise candidates pursuant to standards required by Franchisor and shall make every effort to locate candidates in the Area who meet Franchisor's then-current qualifications required to operate an Anago Unit franchise.
Subfranchisor shall obtain completed franchisee applications for processing and review, and shall timely deliver, in accordance with all applicable laws, Subfranchisor's FDD (Subfranchisor - Single Unit).
Subfranchisorshall promptly refer to Franchisor all inquiries Subfranchisor receives regarding the establishment of a franchise outside the Area.
- (g) Subfranchisor will enter into Franchisor's then-current form of Unit Franchise Agreement with each approved franchise candidate.
A current copy of the Unit Franchise Agreement is attached as Exhibit I.
Subfranchisor acknowledges that certain changes and modifications to the Unit Franchise Agreement may be required in order to comply with System changes, business practices, laws and regulations.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a Subfranchisor has the right to sell franchises within their designated area of responsibility. Specifically, Section 1.2 and the Data Sheet attached to the Anago Subfranchise Rights Agreement define the Subfranchisor's "Area" where they are authorized to sell franchises.
Furthermore, the FDD outlines the Subfranchisor's responsibilities in recruiting prospective franchisees, including screening candidates based on Anago's standards and making efforts to locate candidates within their designated area who meet the qualifications to operate an Anago Unit franchise. The Subfranchisor is required to obtain completed franchisee applications for processing and review and must deliver the Subfranchisor's Franchise Disclosure Document (Subfranchisor - Single Unit) in compliance with all applicable laws.
Additionally, the Subfranchisor is obligated to enter into Anago's current form of Unit Franchise Agreement with each approved franchise candidate. The FDD mentions that changes and modifications to the Unit Franchise Agreement may be necessary to comply with system changes, business practices, laws, and regulations. The Subfranchisor must promptly refer any inquiries they receive regarding franchise establishment outside of their designated area to Anago.