For Anago franchises, what items must franchisees purchase only from the franchisor or an approved supplier?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
y not commence any work or provide any services as an Anago Unit Franchise until this Agreement has been assigned to Your legal entity.
- (b) You must appoint, subject to our approval, one of Your owners who will devote his or her best efforts to the full exploitation and management, day-to-day supervision, and operation of the Anago Unit Franchise.
SECTION 4.4 APPROVED SPECIFICATIONS AND SOURCES OF SUPPLY.
- (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.
- (c) Approval of New Specifications and Suppliers. If You propose to purchase or lease any equipment, supplies, advertising materials, or other products or services, for use within the Anago System, from an unapproved supplier, You must submit to Us a written request for approval, or request the supplier to do so.
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 are required to own their own tools, equipment, and supplies to perform contracted work. Exhibits 3, 4, and 5 list the items that must be purchased exclusively from Anago or an approved supplier. For programs I through X+, the items described on Exhibits 3 and 4 are included in the initial franchise fee. However, purchasers of programs 0 and 500 will not receive these supplies as part of the initial fee and must purchase them separately. Franchisees must also purchase ongoing cleaning supplies and other items that Anago requires on a system-wide basis from Anago or approved suppliers.
Franchisees must buy or lease equipment, supplies, advertising materials, and other products and services from authorized manufacturers, contractors, and suppliers who meet Anago's standards and specifications. These suppliers must have adequate quality controls, the capacity to supply franchisee needs promptly and reliably, and written approval from Anago. Anago may approve a single supplier for any brand or approve a supplier only for certain brands. Factors such as price, quality, and reliability are considered when approving suppliers. Anago may concentrate purchases with one or more suppliers to obtain the lowest prices, best advertising support, or services for franchised units.
Anago reserves the right to identify, approve, or designate manufacturers, vendors, distributors, suppliers, and producers for the Anago system. This includes the terms under which vendors provide products or services, such as insurance, cleaning products and supplies, equipment, and materials, to the subfranchised business and franchised businesses. Franchisees must purchase all such goods and services only from the approved or designated vendor for that product or service, under the terms and in the manner designated by Anago. There may be only one approved or designated vendor for any particular product or service, and the vendor may be Anago or its affiliates, who may derive revenue from these purchases.
If a franchisee proposes to purchase equipment, supplies, advertising materials, or other products or services from an unapproved supplier, they must submit a written request for approval to Anago, or request the supplier to do so. Anago has the right to inspect the supplier's facilities and require samples for testing, with the franchisee paying for the inspection and testing costs. Anago may re-inspect the facilities and products of any approved supplier and revoke approval if the supplier fails to meet Anago's standards and specifications. Anago may also require suppliers to provide evidence of insurance, such as product liability insurance, to protect Anago and its franchisees against claims.