What happens if an Anago subfranchisor attempts to transfer the agreement in violation of its terms?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) If Subfranchisor, contrary to this Agreement, purports to transfer any rights or obligations under this Agreement, or any interest in Subfranchisor, to any third party without first obtaining Franchisor's prior written consent as required under this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if a subfranchisor attempts to transfer any rights or obligations under the Subfranchise Agreement, or any interest in the subfranchisor, to a third party without obtaining Anago's prior written consent, it constitutes a default of the agreement.
Specifically, this is addressed under Section 8.3, which outlines termination by Anago after notice and right to cure. The subfranchisor typically has 30 days after receiving written notice of default from Anago to remedy the situation. If the default, such as an unauthorized transfer, is not resolved within this period, all rights of the subfranchisor under the agreement terminate immediately, without further notice.
This provision protects Anago by ensuring that subfranchise rights are not transferred to unqualified or unapproved parties, maintaining control over its brand and network. It also highlights the importance of seeking and obtaining written consent from Anago before considering any transfer of rights or obligations under the agreement.