If an Anago franchisee requests approval for a new supplier, can Anago require an inspection of the supplier's facilities?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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 proposes to purchase equipment, supplies, advertising materials, or other products/services from an unapproved supplier for use within the Anago system, they must submit a written request for approval to Anago, or request the supplier to do so. As a condition of approval, Anago has the right to require that its representatives be permitted to inspect the supplier's facilities.
Anago may also require that samples from the supplier be delivered, at Anago's option, either to Anago or to an independent, certified laboratory that Anago designates for testing. The franchisee will be responsible for paying a charge not to exceed the reasonable cost of the inspection and the actual cost of the testing. Anago is not liable for damage to any sample that results from the testing process.
Anago also reserves the right to re-inspect the facilities and products of any approved supplier and continue to sample the products at the supplier's expense. Anago can revoke approval if the supplier fails to continue meeting Anago's standards and specifications. Additionally, Anago may require the supplier to present satisfactory evidence of insurance, such as product liability insurance, to protect Anago and its unit franchisees against claims arising from the use of the item within the system. This ensures that Anago maintains control over the quality and standards of products and services used within its franchise system, protecting the brand and its franchisees.