If a provision of the Anago franchise agreement is modified due to legal requirements in a specific jurisdiction, does that modification automatically apply to all other jurisdictions?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
The following are additional disclosures for the Franchise Disclosure Document of ANAGO FRANCHISING, INC. required by various state franchise laws. Each provision of these additional disclosures will only apply to you if the applicable state franchise registration and disclosure law applies to you.
CALIFORNIA
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- THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE FRANCHISE DISCLOSURE DOCUMENT.
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- SECTION 31125 OF THE FRANCHISE INVESTMENT LAW REQUIRES US TO GIVE YOU A FRANCHISE DISCLOSURE DOCUMENT APPROVED BY THE COMMISSIONER OF FINANCIAL PROTECTION & INNOVATION BEFORE WE ASK YOU TO CONSIDER A MATERIAL MODIFICATION OF YOUR SUBFRANCHISE RIGHTS AGREEMENT.
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- OUR WEBSITE, www.anagocleaning.com, HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION & INNOVATION. ANY COMPLAINTS CONCERNING THE CONTENT OF THE WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION & INNOVATION AT www.dfpi.ca.gov.
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- The following statement is added to the end of Item 3:
Neither we, our parent, predecessor or affiliate nor any person in Item 2 of the Franchise Disclosure Document is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. Sections 78a et seq., suspending or expelling such persons from membership in that association or exchange.
- The following paragraphs are added to the end of Item 17:
CALIFORNIA BUSINESS AND PROFESSIONS CODE SECTIONS 20000 THROUGH 20043 PROVIDE RIGHTS TO THE FRANCHISEE CONCERNING TERMINATION, TRANSFER OR NON-RENEWAL OF A FRANCHISE. IF THE FRANCHISE AGREEMENT CONTAINS A PROVISION THAT IS INCONSISTENT WITH THE LAW THE LAW WILL CONTROL. THE SUBFRANCHISE RIGHTS AGREEMENT CONTAINS A COVENANT NOT TO COMPETE THAT EXTENDS BEYOND TERMINATION OF THE FRANCHISE. THIS PROVISION MAY NOT BE ENFORCEABLE UNDER
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, modifications to the franchise agreement due to legal requirements in one jurisdiction do not automatically extend to all other jurisdictions. Instead, Anago includes state-specific addenda to address the specific requirements of various state franchise laws. These addenda are only applicable to franchisees operating in those particular states.
For example, the FDD includes additional disclosures specifically for California, addressing aspects of the California Franchise Investment Law related to agreement delivery, modification of subfranchise rights, website review, orders from securities associations, and franchisee rights concerning termination, transfer, or non-renewal. The addendum explicitly states that each provision applies only if the applicable state franchise registration and disclosure law applies to the franchisee.
This approach ensures that Anago complies with varying legal requirements across different states without imposing unnecessary or conflicting obligations on franchisees in other jurisdictions. Prospective franchisees should carefully review the state-specific addenda applicable to their location to understand any modifications to the standard franchise agreement.