If legislation or regulation prevents an Anago franchisee from operating their Anago Unit Franchise, is Anago liable for damages or required to provide indemnification or refunds?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) WE MAKE NO WARRANTY AS TO YOUR ABILITY TO OPERATE THE ANAGO UNIT FRANCHISE IN THE JURISDICTION WHERE THE ANAGO UNIT FRANCHISE IS TO BE OPERATED. IT IS YOUR OBLIGATION TO SEEK OR OBTAIN ADVICE OF COUNSEL SPECIFICALLY ON THIS ISSUE. IF LEGISLATION ENACTED BY, OR REGULATION OF, ANY GOVERNMENTAL BODY PREVENTS YOU FROM OPERATING THE ANAGO UNIT FRANCHISE, WE ARE NOT LIABLE FOR DAMAGES NOR REQUIRED TO INDEMNIFY YOU OR TO RETURN ANY MONIES RECEIVED FROM YOU.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago is not liable for damages, indemnification, or refunds if a franchisee is prevented from operating their Anago Unit Franchise due to legislation or regulation. The FDD states that Anago makes no warranty regarding a franchisee's ability to operate in their chosen jurisdiction. It is the franchisee's responsibility to seek legal counsel on this matter.
This means that prospective Anago franchisees bear the risk of changes in laws or regulations that could impact their ability to operate their franchise. This could include new licensing requirements, restrictions on cleaning products, or other unforeseen legal obstacles. Anago explicitly disclaims any responsibility for such events.
Given this clause, it is crucial for potential Anago franchisees to thoroughly research the legal and regulatory landscape in their target area before investing in a franchise. This includes consulting with legal counsel to assess potential risks and ensure compliance with all applicable laws. Franchisees should also stay informed about any proposed legislation or regulatory changes that could affect their business. This is a significant risk factor that prospective franchisees need to carefully consider.