What happens if a prospective Anago Unit Franchisee does not meet the minimum standards?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
You are not restricted in the customers to whom you may sell the above-mentioned Unit Franchisees (so long as they meet our minimum standards, as set forth in our then-current form of Unit Franchise Agreement) and respective service contracts in your Area.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 43–44)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, prospective Unit Franchisees must meet minimum standards. While the FDD does not explicitly detail what happens if a prospective franchisee fails to meet these standards, it does state that Subfranchisors are not restricted in who they sell Unit Franchises to, as long as those franchisees meet Anago's minimum standards, as defined in the current Unit Franchise Agreement. This implies that failing to meet the minimum standards would prevent a subfranchisor from selling a franchise to that candidate.
Item 23 outlines several scenarios where corrective measures or additional training may be required for existing franchisees who are not meeting Anago's standards. For example, if a franchisee receives unsatisfactory inspection reports and fails to remedy the deficiencies, Anago may require the franchisee and their representatives to attend refresher corrective measures classes. The franchisee is responsible for all expenses associated with these programs, including a Corrective Measures Fee ranging from $0.00 to $500.00, plus travel, meals, and lodging costs.
Additionally, if a franchisee fails the Anago Orientation Program or loses an Initial Business Account due to non-performance or client dissatisfaction, Anago may require attendance at corrective measures classes. These measures are designed to ensure that all franchisees operate at the required standards of quality and service, maintaining the integrity of the Anago system. While these sections pertain to existing franchisees, they provide insight into the types of issues Anago considers important and how they address deficiencies in performance.
Prospective franchisees should inquire with Anago about the specific minimum standards required for Unit Franchisees and the detailed consequences of failing to meet those standards during the application or training process. Understanding these requirements is crucial for assessing the likelihood of success and the potential costs associated with meeting Anago's expectations.