What happens if I transfer my Anago franchise rights without Anago's written consent?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
umption, You agree within 7 days of a request to sign a release of Us except for any liabilities from which We may not be released under any applicable law. We can also transfer Our stock, engage in public and private securities offerings, merge, consolidate, acquire other businesses including Competitive Businesses, sell all or substantially all of Our assets, borrow money (secured or unsecured), deal in Our assets or otherwise operate Our business without Your consent.
SECTION 10.2 YOUR TRANSFER.
- (a) Personal Rights. The rights and duties stated in this Agreement are personal to You. We have granted the Unit Franchise in reliance on Your business and personal skill, reputation, aptitude and financial capacity. Accordingly, You agree that, unless otherwise expressly permitted by this Agreement, You will not sell, assign, transfer, convey or give voluntarily, involuntarily, directly or indirectly, by operation of law or otherwise (collectively "transfer") any direct or indirect interest in (1) this Agreement, (2) any Account or interest in any Account assigned to You under this Agreement or with respect to which you sign a joinder, or (3) the Unit Franchise without Our prior written consent (that may be granted or withheld by Us in Our sole discretion). However, Our written consent is not required for: (i) a transfer of less than a 5% interest in a publicly held corporation; or (ii) a transfer of all or any part of Your interest to one of Your other original shareholders or partners.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, transferring any direct or indirect interest in the Franchise Agreement, any Account assigned to you, or the Unit Franchise without Anago's prior written consent is a violation of the agreement. Anago grants the Unit Franchise based on your business and personal skills, reputation, aptitude, and financial capacity. Therefore, you need Anago's permission to transfer your rights.
Specifically, any transfer without Anago's consent is considered void and constitutes an Event of Default. If an Event of Default occurs, Anago has the option to terminate all rights granted to you under the Agreement, without providing an opportunity to cure the default. This termination is effective immediately upon notice to you.
There are limited exceptions where Anago's written consent is not required, such as a transfer of less than a 5% interest in a publicly held corporation or a transfer of all or any part of your interest to one of your other original shareholders or partners. Additionally, a transfer of 25% or more of the voting or ownership interests in your corporation, partnership, or limited liability company is considered your transfer of an interest in the Agreement, requiring consent. It is important to note that Anago can grant or withhold consent at their sole discretion.