Can the Anago Franchisor provide written approval to waive the post-term non-compete restrictions for the Subfranchisor?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
cably waived his or her right to make any objection. Subfranchisor agrees that this provision is a material inducement for Franchisor to enter into this Agreement, and any breach of this provision is a material breach of this Agreement. Subfranchisor will take all other steps necessary, at his or her own expense, to protect the Confidential Information and will not divulge Confidential Information either during, or upon the expiration or termination of, this Agreement without the written consent of Franchisor.
ARTICLE 7 - TRANSFER OF INTEREST
Section 7.1 - Transfer by Franchisor
Subfranchisor represents that it has not signed this Agreement in reliance on any particular manager, owner, director, officer or employee remaining with Franchisor in any capacity. Franchisor may change its ownership or form at its discretion.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
Based on Anago's 2025 Franchise Disclosure Document, the Subfranchisor is prohibited from divulging Confidential Information either during, or upon the expiration or termination of, the Agreement without the written consent of Franchisor. This suggests that a waiver of the post-term non-compete restrictions might be possible with the Franchisor's written approval. However, the FDD does not explicitly address the conditions or process for obtaining such a waiver.
It is important to note that the Anago Manuals and other Confidential Information at all times is and remains the sole property of Franchisor. Subfranchisor acquires no right, title or interest to this property under this Agreement except to possess and use the Anago Manuals or other Confidential Information during the Term of, and subject to the restrictions contained in, this Agreement. Therefore, Subfranchisor is prohibited from altering, editing or changing the Anago Manuals or any part of thereof.
Prospective Anago subfranchisees should seek clarification from the franchisor regarding the specific circumstances under which a waiver of the post-term non-compete might be granted. Understanding the criteria and process for obtaining such a waiver is crucial for assessing the long-term flexibility and potential exit strategies associated with the subfranchise.