If an Anago franchisee proposes to purchase equipment from an unapproved supplier, what must they do?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Approval of New Specifications and Suppliers. If You propose to purchase or lease any equipment, supplies, advertising materials, or other products or services, for use within the Anago System, from an unapproved supplier, You must submit to Us a written request for approval, or request the supplier to do so.
We will have the right to require, as a condition of Our approval that Our representatives be permitted to inspect the supplier's facilities, and that samples from the supplier be delivered, at Our option, either to Us or to an independent, certified laboratory We designate for testing.
We are not liable for damage to any sample that results from the testing
process. You will pay a charge not to exceed the reasonable cost of the inspection and the actual cost of the testing. We reserve the right, at Our option, to re-inspect the facilities and products of any approved supplier and continue to sample the products at the supplier's expense and to revoke approval upon the supplier's failure to continue to meet Our standards and specifications. We may also require as a condition to Our approval, that the supplier present satisfactory evidence of insurance, for example, product liability insurance, protecting Us and Our Unit Franchisees against all claims from the use of the item within the System.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if a franchisee wants to purchase equipment, supplies, advertising materials, or other products or services for use within the Anago system from a supplier that is not already approved, they must take specific steps to seek approval. The franchisee is required to submit a written request for approval to Anago. Alternatively, the franchisee can have the unapproved supplier submit the request directly to Anago.
Anago has the right to inspect the supplier's facilities as a condition of approval. They may also require that samples from the supplier be delivered either to Anago or to an independent, certified laboratory designated by Anago for testing. The franchisee is responsible for covering the costs associated with the inspection and testing, but these charges will not exceed the reasonable cost of the inspection and the actual cost of the testing.
Even after a supplier is initially approved, Anago reserves the right to re-inspect the supplier's facilities and products periodically. They can also continue to sample the products at the supplier's expense to ensure ongoing compliance with Anago's standards and specifications. Anago retains the right to revoke approval if the supplier fails to continue meeting these standards. Furthermore, Anago may require the supplier to provide satisfactory evidence of insurance, such as product liability insurance, to protect Anago and its unit franchisees against claims arising from the use of the supplier's items within the Anago system.