factual

For Anago franchises, what items must franchisees purchase only from Anago or an approved supplier?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (a) Purchases from Us or Our Affiliates. We do not allow You to use Our tools, equipment or supplies to perform the work of Your Unit Franchise.

You must own Your own tools, equipment and supplies necessary to perform the work for which the Account has contracted.

However, You must purchase only from Us or an approved supplier the items stated in Exhibits 3, 4, and 5 (The items described on Exhibits 3 and 4 are included in the Initial Fee for programs I through X+.

Purchasers of programs 0 and 500 will not receive these supplies as part of the Initial Fee and must purchase them separately).

This is in addition to Your ongoing needs for cleaning supplies and other items that We require, if implemented on a System-wide basis.

  • (b) Authorized Specifications and Suppliers. You must purchase or lease equipment, supplies, advertising materials, and other products and services used for the operation of the Anago Unit Franchise only from authorized manufacturers, contractors and other suppliers who demonstrate, to Our continuing satisfaction: the ability to meet Our standards and specifications for these items; possess adequate quality controls and capacity to supply Your needs promptly and reliably; and have been approved in writing by Us and not later disapproved.

We may approve a single supplier for any brand and may approve a supplier only as to a certain brand or brands.

In approving suppliers for the System, We may take into consideration factors like the price and quality of the products or services and the supplier's reliability.

We may concentrate purchases with 1 or more suppliers to obtain the lowest prices and/or the best advertising support and/or services for any group of Franchised Units or Company Units within the System.

Approval of a supplier may be conditioned on requirements on the frequency of delivery, standards of service, warranty policies including prompt attention to complaints, and concentration of purchases, as stated above, and may be temporary, pending Our additional evaluation of the supplier.

We in no way warrant the use of approved vendors or supplies when they are utilized outside the Anago System.

We may designate a supplier where a Franchisee may go and buy supplies and charge the supplies to the House Account.

If you use the House Account to purchase supplies and elect to have your purchases deducted from your statement each month, we will charge you a financing fee of 5.25% of the amount charged.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

What This Means (2025 FDD)

According to Anago's 2025 Franchise Disclosure Document, franchisees must purchase specific items from Anago or its approved suppliers. Anago does not allow franchisees to use their tools, equipment, or supplies. Franchisees must own their own tools, equipment, and supplies to perform the contracted work. The items that must be purchased from Anago or an approved supplier are listed in Exhibits 3, 4, and 5. For programs I through X+, these items are included in the initial franchise fee, while purchasers of programs 0 and 500 must purchase them separately.

Franchisees are also required to purchase or lease equipment, supplies, advertising materials, and other products and services used for operating the Anago Unit Franchise only from authorized manufacturers, contractors, and suppliers approved by Anago. These suppliers must meet Anago's standards and specifications, have adequate quality controls, and be able to supply the franchisee's needs promptly and reliably. Anago may approve a single supplier for any brand or approve a supplier only for certain brands.

Anago may consider factors such as price, quality, and reliability when approving suppliers. They may also concentrate purchases with one or more suppliers to obtain the lowest prices, best advertising support, or services for any group of franchised units. Approval of a supplier may be conditional on requirements such as delivery frequency, service standards, warranty policies, and purchase concentration. Anago does not warrant the use of approved vendors or supplies when they are utilized outside the Anago System. Anago may designate a supplier where a franchisee can buy supplies and charge them to a House Account. If a franchisee uses the House Account, they will be charged a financing fee of 5.25% of the amount charged.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.