Does Anago guarantee that fulfilling its obligations under the Anago franchise agreement will not violate any existing contracts, agreements, statutes, rules, or regulations?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Authorization. You have the power to sign, deliver, and carry out this Agreement. You have taken all necessary action for proper authorization. This Agreement has been duly authorized, signed and delivered by You and is Your valid, legal and binding agreement and obligation in accordance with this Agreement, except as may be limited by applicable bankruptcy, insolvency, reorganization and other laws and equitable principles affecting creditors' rights generally.
- (c) No Violation. Your performance of Your obligations under this Agreement will not result in: (i) the breach of any term of, or be a default under, any term of any contract, agreement or other commitment that You are a party to or are bound by, or be an event that, with notice, lapse of time or both, would result in a breach or event of default; nor (ii) result in Your violation of any statute, rule, regulation, ordinance, code, judgment, order, injunction or decree.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago does not guarantee that the franchisee's performance of the franchise agreement will not violate any existing contracts, agreements, statutes, rules, or regulations. Instead, the FDD states that the franchisee represents and warrants that their performance under the agreement will not breach any existing contracts or agreements they are a party to, nor violate any statutes, rules, regulations, or decrees. This places the onus on the franchisee to ensure their Anago business operations comply with all applicable laws and agreements.
This means that before signing the Anago franchise agreement, prospective franchisees must carefully review all existing contracts, agreements, and legal obligations to ensure they can fulfill their Anago obligations without creating a conflict. This includes any non-compete agreements, partnership agreements, or other business commitments. Franchisees should also consult with legal counsel to confirm their understanding of all applicable federal, state, and local laws and regulations.
Anago also states that the franchisee is responsible for obtaining and maintaining all necessary permits, certificates, and licenses required to operate the Anago Unit Franchise. The franchisee must also provide Anago with copies of any inspection reports or warnings from governmental entities indicating material noncompliance with any applicable law, rule, or regulation within two days of receipt. This further emphasizes the franchisee's responsibility for compliance and the potential consequences of non-compliance.
In essence, Anago places the responsibility on the franchisee to ensure compliance with all applicable laws, rules, and regulations. The franchisee also warrants that entering into the agreement will not violate any existing obligations. This is a common practice in franchising, as the franchisee is typically in the best position to understand their own existing obligations and the laws applicable to their specific location and business operations.