How will Anago interpret the franchise agreement in California regarding maximum price limits, considering the Antitrust Law section of the Office of the California Attorney General?

According to Anago's 2025 Franchise Disclosure Document, Anago will not interpret the franchise agreement as permitting or requiring maximum price limits in California. This is due to the Antitrust Law Section of the Office of the California Attorney General viewing maximum price agreements as per se violations of the Cartwright Act.

This means that while Anago's standard franchise agreement might contain clauses about maximum pricing, those clauses will not be enforced in California if they conflict with state antitrust laws. A prospective franchisee in California should be aware that Anago acknowledges the state's stance on maximum price agreements and will operate accordingly within the state.

This provision protects the franchisee from potential legal issues related to price fixing, allowing them more autonomy in setting prices. However, franchisees should still be aware of any potential minimum pricing requirements that Anago might impose, as long as those are legally permissible.