Can the 'Internal Dispute Resolution Deadline' be extended for Anago disputes, and if so, under what conditions?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Within thirty (30) days of receipt of the notice of intent to initiate arbitration, the receiving party may request the other party to provide additional information and documents to resolve the controversy, dispute, or claim. Franchisor and Subfranchisor will make commercially reasonable effort to resolve the controversy, dispute, or claim internally within sixty (60) days ("Internal Dispute Resolution Deadline") of submission of all information reasonably requested by the receiving party, unless the parties mutually agree to extend the Internal Dispute Resolution Deadline. If any such controversy, dispute, or claim is not resolved internally as described above then Franchisor and Subfranchisor agree that such controversy, dispute, or claim between Franchisor or Franchisor's affiliates, and Franchisor and their respective shareholders, officers, directors, agents, and employees, on the one hand, and Subfranchisor (and Subfranchisor's owners, guarantors, affiliates, and employees), on the other hand, must be submitted for binding arbitration, on demand of either party, to the American Arbitration Association. The arbitration proceedings will be conducted by one arbitrator and, except as this Section otherwise provides, according to the then-current Commercial Arbitration Rules of the American Arbitration Association. All proceedings will be conducted at a suitable location chosen by the arbitrator in or within 50 miles of Franchisor's then-current principal place of business (currently, Pompano Beach, Florida). All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.). Judgment upon the arbitrator's award may be entered in any court of competent jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Internal Dispute Resolution Deadline for resolving disputes can be extended if both parties mutually agree. The standard process involves a receiving party having 30 days to request additional information and documents after receiving a notice of intent to initiate arbitration. Anago and the subfranchisor are then expected to make commercially reasonable efforts to resolve the dispute internally within 60 days from the submission of all reasonably requested information.
This 60-day period is referred to as the "Internal Dispute Resolution Deadline." However, this deadline is not absolute. If both Anago and the subfranchisor agree, they can extend this deadline to allow for further negotiation or information gathering. If the dispute remains unresolved after this internal process, the matter must be submitted for binding arbitration to the American Arbitration Association, upon demand of either party.
For a prospective Anago subfranchisor, this means there is an opportunity to negotiate for more time to resolve a dispute outside of formal arbitration, potentially saving on legal costs and time. However, it also means that Anago must also agree to the extension, so it is not guaranteed. Understanding the conditions under which Anago is likely to agree to an extension could be a crucial point of negotiation for franchisees.