Is the Anago Franchisor responsible for ensuring the Subfranchisor complies with all licensing requirements?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Subfranchisor shall not use any false or misleading advertising, including in the solicitation of prospective Unit Franchisees.
Subfranchisor will comply with all laws regulating the content and use of advertising including registration with, and approval by, applicable state franchise regulators.
Subfranchisor shall obtain Franchisor's prior written consent, which may be granted or withheld in Franchisor's sole and absolute discretion, prior to participating in any fra
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Subfranchisor is responsible for complying with advertising laws and regulations. Specifically, the Subfranchisor must comply with all laws regulating the content and use of advertising, including registration with and approval by applicable state franchise regulators. The Subfranchisor must also obtain Anago's prior written consent before participating in any franchise expositions. Anago has the sole discretion to grant or withhold this approval.
Furthermore, the Subfranchisor has an obligation to ensure that each Unit Franchisee within their area operates strictly in accordance with the standards of the Anago system, as detailed in the Unit Franchise Agreement and the Anago Manuals. The Subfranchisor must adhere to Anago's policies and procedures for monitoring compliance, which may include unit inspections and can be amended by Anago from time to time.
In addition, the Subfranchisor must comply with Anti-Terrorism Laws, and assist Anago in complying with these laws to the fullest extent possible. The Subfranchisor is solely responsible for determining what actions they must take to comply with all Anti-Terrorism Laws. Any misrepresentation or violation of these laws by the Subfranchisor can result in immediate termination of the agreement.