If an Anago franchisee proposes to purchase from an unapproved supplier, what action must be taken first?

According to Anago's 2025 Franchise Disclosure Document, if a franchisee wants to purchase equipment, supplies, advertising materials, or other products/services from a supplier that Anago has not approved, the franchisee must first submit a written request for approval to Anago. Alternatively, the unapproved supplier can submit the request themselves.

Anago has the right to inspect the supplier's facilities and request samples as a condition of approval. Anago also specifies that for any products or services for which they do not have an approved vendor, the franchisee may use any vendor that meets the specifications set forth in Anago's manuals. However, Anago retains the right to require franchisees to purchase computers and other products/services only from approved or designated vendors, as communicated in the manuals or in writing.

For any product or service where Anago has already approved a vendor, franchisees must purchase all such goods and services exclusively from that approved vendor, under the terms and from the source designated by Anago. Anago may be the only approved vendor for a particular product or service and may derive revenue from franchisee purchases. Anago estimates that required purchases or leases are approximately 3% - 5% of the cost to establish your Anago Subfranchise Rights Business and approximately 0.5% - 1% of your total annual operating expenses.