What happens if an Anago franchisee fails to pay taxes or maintain insurance on the collateral?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
all inspection reports, warnings, certificates and ratings, issued by any governmental entity during the Term on the conduct of the Anago Unit Franchise that indicates Your material noncompliance with any applicable law, rule or regulation, to Us within 2 days of Your receipt of these items. We accept no responsibility for any of Your operations, janitorial or otherwise.
SECTION 4.7 TAX PAYMENTS; CONTESTED ASSESSMENTS.
You will promptly pay when due all taxes required by any federal, state or local tax authority including unemployment taxes, withholding taxes, income taxes, tangible commercial personal property taxes, real estate taxes, intangible taxes and all other indebtedness You incur in the conduct of the Anago Unit Franchise. You will pay to Us an amount equal to any sales tax, goods and services taxes, gross receipts tax, or similar tax imposed on Us for any payments to Us required under this Agreement, unless the tax is measured by or involves the net income or Our corporate status in a state. If We pay any tax for which You are responsible, You will promptly reimburse Us the amount paid. If there is any bona fide dispute as to liability for taxes assessed or other indebtedness, You may contest the validity or the amount of the tax or indebtedness in accordance with procedures of the taxing authority or applicable law. However, You will not permit a tax sale or seizure by levy or signing or similar writ or warrant, or attachment by a creditor, to occur against any assets used in the Anago Unit Franchise.
SECTION 4.8 CLIENT SURVEYS; CLIENT LIST.
You will present to Clients all Performance Evaluation forms We require and will participate and/or request Our Clients to participate in all marketing surveys performed by or for Us. You will maintain a Current Client list containing each Client's name, address, telephone number and zip/postal code and supply a copy of the list to Us on a quarterly basis. You must participate in any process We develop to record all Client information. We own all Client lists of
Your Unit Franchise. This list is Our Confidential Information and will not be disclosed by You to any third party.
SECTION 4.9 INSPECTIONS.
You understand and agree that for the protection of the System and Proprietary Marks that quality control is necessary to ensure we and all our Franchisees not only continue growing but deliver the best quality of service. Therefore, You will permit Us and/or Our representatives to enter Your Premises or buildings where You are providing services at any time for purposes of conducting inspections.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, franchisees must promptly pay all federal, state, and local taxes when due, including unemployment, withholding, income, tangible personal property, real estate, and intangible taxes. Franchisees must also reimburse Anago for any sales, goods and services, or gross receipts taxes that Anago pays on the franchisee's behalf, unless the tax is based on Anago's net income or corporate status. While franchisees can dispute tax assessments, they cannot allow a tax sale or seizure of assets used in the Anago Unit Franchise.
If an Anago franchisee fails to maintain the required insurance, Anago has the right, but not the obligation, to procure the insurance and charge the franchisee for the cost, plus interest at the maximum rate permitted by law, along with a reasonable fee for expenses incurred.
Failure to comply with any requirements of the Franchise Agreement, including maintaining insurance, constitutes an event of default. If the default is not cured within the applicable cure period, all rights under the Agreement terminate immediately without additional notice. Anago may also terminate the agreement without an opportunity to cure if the franchisee knowingly maintains false records.