If Anago delegates duties to a Designee, what are my obligations to that Designee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
SECTION 2.9 DUTIES ONLY TO YOU.
All of Our obligations under this Agreement are only to You. No other party is entitled to rely on, enforce, or obtain relief for breach of the obligations either directly or by subrogation.
SECTION 2.10 OUR RIGHT TO DELEGATE DUTIES.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Section 2.9 clearly states that Anago's obligations under the Franchise Agreement are solely to the franchisee. This means that if Anago delegates any of its duties or responsibilities to another party, referred to as a "Designee," the franchisee's rights and Anago's obligations to the franchisee remain unchanged. The franchisee cannot seek recourse from the Designee for any failures or breaches of duty, as the Designee has no direct obligation to the franchisee.
This clause protects Anago by ensuring they can utilize third parties without creating additional liabilities to franchisees. However, it places the onus on the franchisee to hold Anago accountable for all duties, regardless of whether Anago performs them directly or through a Designee. It is important for a prospective franchisee to understand that their agreement is solely with Anago, and they must direct all concerns and claims to Anago, even if the issue arises from the actions of a Designee.
In practical terms, if Anago delegates training, support, or any other service to a third party, the franchisee's contractual relationship remains with Anago. If the Designee fails to provide adequate service, the franchisee's recourse is against Anago, not the Designee. This arrangement is not uncommon in franchising, as franchisors often outsource certain functions to specialists. However, the franchisee should carefully evaluate Anago's ability to oversee and ensure the quality of services provided by any Designees, as the franchisee's success depends on it.
Therefore, a prospective Anago franchisee should focus on Anago's track record and reputation for fulfilling its obligations, rather than the specific individuals or entities performing the services. It would be prudent to ask Anago about their criteria for selecting Designees, the oversight mechanisms in place, and the process for resolving disputes arising from the actions of Designees. Understanding these aspects will help the franchisee assess the potential risks and benefits of Anago's delegation practices.