If Anago transfers its obligations under the Franchise Agreement and provides written notice, what is the franchisee's obligation regarding a release of Anago, and within what timeframe must this action be taken?

Based on the 2025 Anago Franchise Disclosure Document, the franchisee's obligation to release Anago of claims arises specifically when the franchisee seeks to obtain a Successor Anago Unit Franchise Agreement for additional terms. To secure a successor agreement, the franchisee must sign a general release of all claims against Anago and its affiliates, along with their respective officers, directors, shareholders, agents, and employees. This release excludes liabilities that Anago cannot legally be released from under applicable state law.

This requirement is one of several conditions that must be met before a franchisee can obtain a Successor Anago Unit Franchise Agreement. The franchisee must provide written notice of their intention to exercise the option between 9 and 12 months before the end of the current term. They also cannot be in default of any agreement with Anago or its affiliates. Additionally, the franchisee must sign and deliver the Successor Anago Unit Franchise Agreement within 30 days before the end of the current term, and comply with all other requirements imposed under the new agreement, though without incurring a new initial fee or renewal fee.

If a franchisee fails to meet all these conditions, Anago may choose not to enter into a Successor Anago Unit Franchise Agreement. However, the franchisee then has the option to sell their Unit Franchise, subject to Anago's right of first refusal and approval of any transferee, with at least 180 days to complete the sale.