What laws might limit the Anago Subfranchisor's obligations under the agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise provided in Sections 8.1 and 8.2, Subfranchisor has 30 days after delivery from Franchisor of a written Notice of Default specifying the nature of the default within which to remedy any default under this Agreement and provide evidence of cure satisfactory to Franchisor. If any default is not cured within that time, or any longer period as applicable law may require, all the rights of Subfranchisor under this Agreement terminate without additional notice to Subfranchisor effective immediately upon the expiration of the 30-day period or any longer period as applicable law may require. In addition to the events specified in Sections 8.1 and 8.2, Subfranchisor is in default under this Section for any failure to comply with any of the requirements imposed by this Agreement, as it may reasonably be revised or supplemented by the Anago Manuals, or to carry out the terms of this Agreement in good faith. Subfranchisor has the burden of proving Subfranchisor properly and timely cured any default, to the extent a cure is permitted under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Section 8.3 outlines the conditions under which the Subfranchisor can have their agreement terminated due to default. Specifically, the Subfranchisor has a 30-day period after receiving written notice from Anago to correct any default under the agreement.
However, this 30-day cure period is subject to modification based on applicable law. The clause states that if the default is not corrected within 30 days, "or any longer period as applicable law may require", the Subfranchisor's rights under the agreement terminate. This means that certain laws could mandate a longer cure period than the standard 30 days provided in the agreement, thereby limiting Anago's ability to terminate the agreement within the initially specified timeframe.
This provision acknowledges that state or federal laws may provide franchisees with greater protection or longer periods to remedy a default than what is stipulated in the franchise agreement. It is important for prospective Anago Subfranchisors to be aware of any such laws in their jurisdiction that could affect the termination process and their rights to cure a default.