factual

Who is identified as a third-party beneficiary of the confidentiality covenants executed by the Anago subfranchisor's personnel?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (d) Subfranchisor acknowledges and agrees that Franchisor is an intended third-party beneficiary of the Unit Franchise Agreement, including without limitation, the provisions of the Unit Franchise Agreement which relate to dispute resolution and payment of fees by Franchisee to Subfranchisor, and that AFI has the right (but not the obligation) to enforce any provision of the Unit Franchise Agreement as though it were a party thereof.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

What This Means (2025 FDD)

According to Anago's 2025 Franchise Disclosure Document, Section 2.6 identifies Anago Franchising, Inc. (AFI) as an intended third-party beneficiary of the Unit Franchise Agreement. This includes, without limitation, the provisions of the Unit Franchise Agreement which relate to dispute resolution and payment of fees by the franchisee to the subfranchisor. AFI has the right, but not the obligation, to enforce any provision of the Unit Franchise Agreement as though it were a party thereof.

This means that Anago retains certain rights and benefits related to the agreements between the subfranchisor and the unit franchisees. Specifically, Anago can enforce the terms of the Unit Franchise Agreement, particularly those concerning dispute resolution and fee payments, even though Anago is not a direct party to that agreement.

For a prospective subfranchisor, this clause highlights the ongoing relationship and obligations to Anago, even in dealings with individual unit franchisees. It also means that Anago has the power to intervene and enforce agreements between the subfranchisor and unit franchisees, which could impact the subfranchisor's operational control and financial arrangements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.