What happens if an Anago franchisee declines an offer of initial business?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
You are under no obligation to accept Initial Business offered. Our obligation is only to "offer" Initial Business to You within the Initial Offering Period. Should You decline an offer, You must sign a written statement stating that You have declined the offer. A refusal to sign a statement of decline is a material breach under this Agreement and We then have the option of immediately terminating this Agreement. All declined offers will satisfy Our obligation to offer those portions of Initial Business within the Initial Offering Period. Should You decline all Initial Business offered during the Initial Offering Period, then We have the right to terminate this Agreement. If We terminate this Agreement, We will keep all fees You paid to Us and, if You financed a portion of the Initial Fee, the unpaid portion will be forgiven. If We do not exercise the right to terminate this Agreement and You have financed a portion of the Initial Fee, the
unpaid balance becomes immediately payable.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a franchisee is under no obligation to accept initial business that is offered to them. Anago's obligation is only to offer initial business within the initial offering period. If the franchisee declines an offer, they must sign a written statement confirming their decision. Refusal to sign this statement is considered a material breach of the agreement, which gives Anago the option to immediately terminate the agreement.
If the franchisee declines all initial business offered during the initial offering period, Anago has the right to terminate the agreement. Should Anago choose to terminate the agreement, they will retain all fees paid by the franchisee. If the franchisee financed a portion of the initial fee, the unpaid portion will be forgiven.
However, if Anago does not exercise its right to terminate the agreement and the franchisee financed a portion of the initial fee, the unpaid balance becomes immediately payable. This means the franchisee would still be responsible for paying off the financed portion of the initial fee, even though they declined the business and Anago chose not to terminate the agreement.