For Anago franchisees, how long does the franchisee have to provide a replacement after the 3-month disability period of a qualifying owner?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) If any Owner of You who holds a 25% or greater voting or ownership interest in You becomes disabled from any cause and is unable to perform his or her obligations under this Agreement for a continuous period in excess of 3 consecutive months, You (or Your legal representative) will within 30 days after the 3 months of disability provide and maintain a replacement satisfactory to Us to perform Your obligations under this Agreement. If a replacement is not provided or maintained as required, We may (but are not obligated to) secure a replacement for You, and You will reimburse Us the costs and expenses We incur in doing so (including the payment of the replacement's wages and benefits). For all purposes of this Agreement, any period of disability that is interrupted by a return to active work and proper performance of duties under this Agreement for 14 days or less is deemed continuous disability.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if an owner with at least a 25% voting or ownership interest becomes disabled and cannot fulfill their obligations for more than three consecutive months, the franchisee has 30 days after the three-month disability period to provide a replacement that Anago finds satisfactory.
If the franchisee does not provide or maintain a suitable replacement within that 30-day timeframe, Anago has the option, but not the obligation, to find a replacement themselves. If Anago chooses to secure a replacement, the franchisee is responsible for reimbursing Anago for all associated costs and expenses, including the replacement's wages and benefits.
It is important to note that any disability period interrupted by a return to active work and proper performance of duties for 14 days or less is considered a continuous disability. This means the clock doesn't reset if the owner briefly returns to work for a short period during the three-month window.