What is Anago's intent when operating master franchisees through temporary ownership?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company holds certain master franchisees through temporary ownership due to the abandonment or returned master territories. The operations of these master franchisees are maintained with the full intent of finding an unrelated party for resale. During the year ended December 31, 2024, 2023, and 2022 the Company held ownership in EHLB, Inc., PBTR, Inc. and CCTD, Inc. In November 2024, the Company sold the territory held by EHLB, Inc.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago sometimes takes temporary ownership of master franchises due to abandonment or the return of territories. When Anago operates these master franchises, its intention is to find an unrelated third party to purchase the franchise. During the years ended December 31, 2022, 2023, and 2024, Anago held ownership in EHLB, Inc., PBTR, Inc., and CCTD, Inc. Anago sold the territory held by EHLB, Inc. in November 2024.
For a prospective franchisee, this indicates that Anago may step in to manage a master franchise territory if the previous franchisee defaults or leaves the system. This could present an opportunity for a new franchisee to potentially acquire an existing master franchise from Anago directly.
However, it also suggests that some territories may have faced challenges leading to abandonment or return. A potential franchisee should investigate the reasons behind these situations and assess the performance and potential of any territories Anago is currently operating temporarily before considering purchasing a franchise in those areas.