If Anago modifies the System, is the franchisee required to make all expenditures and modifications that Anago requires?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
ss or contest Franchisor's sole right to register, use or license others the right to use the Confidential Information, copyrights, trade secrets, methods, or any other intellectual property rights.
Section 6.3 - Periodic Revisions
Franchisor may revise and change the contents of the Anago Manuals and Subfranchisor expressly agrees to comply with each new or changed provision and shall implement and enforce all
such modifications, as applicable, in connection with each Unit Franchisee in the Area. A new or changed provision is effective on the 30th day (or any longer time as specified by Franchisor) after written notice from Franchisor. Revisions to the Anago Manuals are based on what Franchisor, in its sole discretion, deem is in the best interests of the System, including to promote quality, enhance good will, increase efficiency, decrease administrative burdens, or improve profitability of Subfranchisor or its Unit Franchisees. Subfranchisor will at all times ensure that its copy of the Anago Manuals contains all updates received by Subfranchisor from Franchisor. Upon any dispute as to the contents of the Anago Manuals, the terms contained in the "Master Copy" of each of the Anago Manuals maintained by Franchisor at Franchisor's home office is controlling.
Section 6.4 - Prior Information
Subfranchisor acknowledges that all Confidential Information received before the Agreement Date was unknown to Subfranchisor before the negotiation and signing of this Agreement and that the marketing practices and operating procedures developed by Franchisor and loaned to Subfranchisor by Franchisor are unique to Franchisor. To the extent Subfranchisor receives any Confidential Information after the Agreement Date, and Subfranchisor does not object in writing to Franchisor within 30 days after receipt that any of the information comprising the Confidential Information should not be considered Confidential Information, then Subfranchisor agrees that he or she is deemed to have irrevocably waived his or her right to make any objection. Subfranchisor agrees that this provision is a material inducement for Franchisor to enter into this Agreement, and any breach of this provision is a material breach of this Agreement. Subfranchisor will take all other steps necessary, at his or her own expense, to protect the Confidential Information and will not divulge Confidential Information either during, or upon the expiration or termination of, this Agreement without the written consent of Franchisor.
ARTICLE 7 - TRANSFER OF INTEREST
Section 7.1 - Transfer by Franchisor
Subfranchisor represents that it has not signed this Agreement in reliance on any particular manager, owner, director, officer or employee remaining with Franchisor in any capacity. Franchisor may change its ownership or form at its discretion.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if Anago modifies the system, Subfranchisors are generally required to comply with these changes, potentially incurring costs. Specifically, Subfranchisors must obtain and use the computer hardware and software system designated by Anago, including Anago's proprietary software. This includes installing the computerized NBDS management systems and accepting NBDS, which may be modified in response to business, operations, and marketing conditions.
Furthermore, the Subfranchisor is responsible for entering into any software licenses, terms of use, and software maintenance agreements, and for paying any associated license and maintenance fees required by Anago or its affiliates. The Subfranchisor must replace these systems when Anago deems it advisable, considering factors such as the system's age, operating costs, condition, current and anticipated technology, information used by other Subfranchisors, the needs of the system, and other relevant factors. Failure to use the computer system and Anago proprietary software as directed by Anago can result in a material breach of the agreement, potentially leading to termination.
Anago may revise and change the contents of the Anago Manuals, and the Subfranchisor expressly agrees to comply with each new or changed provision. They must implement and enforce all such modifications in connection with each Unit Franchisee in their area. These revisions become effective 30 days after written notice from Anago, or any longer time specified by Anago. Revisions to the Anago Manuals are based on what Anago, in its sole discretion, deems is in the best interests of the System, including to promote quality, enhance good will, increase efficiency, decrease administrative burdens, or improve profitability of Subfranchisor or its Unit Franchisees. The Subfranchisor is responsible for ensuring their copy of the Anago Manuals contains all updates received from Anago.