Can an Anago franchisee use system improvements ('Innovations') inconsistent with their franchise agreement obligations without written consent?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (k) Operational Suggestions. Subfranchisor is encouraged to submit suggestions in writing to Franchisor for improving elements of the System, such as products, services, equipment, service format, advertising and any other relevant matters, which will be considered by Franchisor when adopting or modifying standards, specifications and procedures for the System. Subfranchisor agrees that any suggestions made by Subfranchisor under this Agreement are the exclusive property of Franchisor. Franchisor has no obligation to use these suggestions and no obligation to provide compensation for any suggestion. Subfranchisor may not use any suggestions inconsistent with his or her obligations under this Agreement without the written consent of Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a subfranchisor is not allowed to use any suggestions or system improvements ('Innovations') that are inconsistent with their obligations under the franchise agreement without obtaining prior written consent from Anago.
Anago encourages subfranchisors to submit suggestions in writing for improving elements of the system, such as products, services, equipment, service format, and advertising. These suggestions will be considered by Anago when adopting or modifying standards, specifications, and procedures for the system. However, any suggestions made by the subfranchisor become the exclusive property of Anago, and Anago has no obligation to use them or provide compensation for them.
This requirement ensures that all Anago franchisees operate under a consistent set of standards and procedures, maintaining brand uniformity and quality control. It also protects Anago's ownership of any improvements or modifications to the system, preventing unauthorized use or dissemination of proprietary information. A prospective franchisee should carefully consider this restriction and ensure they are comfortable with Anago's control over system improvements before investing in a franchise.