If Anago performs a franchisee's obligations due to their deficiencies, what is the franchisee's responsibility?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (q) Deficiencies. If You do not satisfy Your obligations under this Agreement, We may (in our sole discretion) perform Your obligations for You.
You must reimburse Us for Our costs incurred in performing Your obligations.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if a franchisee fails to meet their obligations under the franchise agreement, Anago has the discretion to step in and perform those obligations on behalf of the franchisee. In such instances, the franchisee is responsible for reimbursing Anago for all costs incurred while performing the franchisee's obligations.
This means that if Anago has to take over tasks or responsibilities that a franchisee is supposed to handle, the franchisee will have to pay Anago for the expenses incurred during that process. This could include a wide range of costs, depending on the nature of the obligations Anago is fulfilling.
This clause protects Anago by ensuring they are not financially burdened by a franchisee's failure to meet their contractual duties. It also incentivizes franchisees to adhere to the agreement to avoid incurring additional costs. Prospective franchisees should understand that failing to meet their obligations can lead to Anago intervening and the franchisee being responsible for covering those costs.