If an Anago franchisee fails to maintain required insurance, does Anago have an obligation to procure insurance on their behalf?

According to Anago's 2025 Franchise Disclosure Document, Anago has the right, but not the obligation, to procure insurance for a franchisee who fails to maintain the required coverage. If Anago chooses to obtain insurance on behalf of the franchisee, the franchisee is responsible for the cost of the insurance, plus interest at the maximum rate permitted by law, along with a reasonable fee for Anago's expenses in procuring the insurance. The franchisee must pay these charges immediately upon notice.

This means that as an Anago franchisee, you are ultimately responsible for maintaining the required insurance coverage. Failure to do so not only puts your business at risk but also allows Anago to step in and secure coverage, passing the costs directly to you, potentially with added interest and fees. While Anago is not obligated to do this, they have the right to protect their interests and ensure the business is covered.

It is important for prospective Anago franchisees to understand the insurance requirements outlined in the Franchise Agreement and to maintain the necessary coverage to avoid potential financial burdens and ensure compliance with the agreement. Franchisees should also be aware that Anago may periodically adjust the required coverage amounts and types of insurance, so staying informed about these changes is crucial.