Does Anago guarantee the lowest prices or best advertising support by concentrating purchases with certain suppliers?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
In approving suppliers for the System, we typically, but are not required to, require that the
supplier be nationally or regionally recognized, and we may take into any factors that we believe to be relevant, including, for example, the price and quality of the products or services, the vendor's frequency of delivery, the vendor's standards of service and reputation in the community, and the reliability of the supplier. We may concentrate purchases with 1 or more suppliers to obtain, but we do not necessarily guarantee, the lowest prices and/or the best advertising support and/or services for any group of Anago Subfranchisors, Anago Unit Franchisees or company/affiliateowned units within the System. Approval of a supplier may be temporary, pending our additional evaluation of the supplier. If we later disapprove a supplier, we will timely notify you in writing of the disapproval. You must cease purchasing from that supplier within a reasonable time (but in any event, within 30 days) after your receipt of our notice of disapproval.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago may concentrate purchases with one or more suppliers. However, Anago does not necessarily guarantee the lowest prices, best advertising support, or services for any group of Anago Subfranchisors, Anago Unit Franchisees, or company/affiliate-owned units within the System. This means that while Anago may try to leverage its collective buying power, franchisees are not assured of receiving the absolute best deals.
Anago typically requires that approved suppliers be nationally or regionally recognized, but this is not mandatory. When approving suppliers, Anago may consider factors such as price, quality, delivery frequency, service standards, community reputation, and reliability. This indicates that Anago prioritizes a range of factors beyond just price when selecting suppliers.
Prospective franchisees should be aware that Anago can change approved suppliers and will notify franchisees in writing if a supplier is disapproved. Franchisees must then cease purchasing from that supplier within a reasonable time, not exceeding 30 days. This highlights the importance of staying informed about approved supplier lists and being prepared to switch vendors if required by Anago. Anago may also negotiate purchase arrangements, including pricing and payment terms, with approved or designated suppliers from time to time.