What level of cooperation is expected from an Anago Subfranchisor in administering the franchise program?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
If any action or proceeding is brought against Subfranchisor regarding its business, Subfranchisor will immediately provide Franchisor with copies of all pleadings, papers and material correspondence regarding the action or proceeding. Subfranchisor will keep Franchisor informed about the progress and outcome of the action or proceeding. If Franchisor deems, in its sole discretion, that any action, suit or proceeding commenced against Subfranchisor or any of its employees may have an impact on the Anago franchise System, Franchisor shall have the right to participate in any such action, suit or proceeding and Subfranchisor agrees to cooperate fully with Franchisor's participation.
Subfranchisor shall comply with, and assist Franchisor to the fullest extent possible in Franchisor's efforts to comply with, the Anti-Terrorism Laws (as defined below). Subfranchisor shall not hire nor have any dealings with any person listed on the SDN List, as it may be modified from time to time. Subfranchisor is solely responsible for ascertaining what actions must be taken by Subfranchisor to comply with all Anti-Terrorism Laws. Subfranchisor specifically acknowledges and agrees that Subfranchisor's indemnification obligations under this Agreement pertain to Subfranchisor's obligations under this Section. Any misrepresentation by Subfranchisor under this Section, or any violation of any Anti-Terrorism Laws by Subfranchisor, Subfranchisor's owners, principals or employees, shall constitute grounds for immediate termination of this Agreement and any other agreement Subfranchisor has entered into with Franchisor or its Affiliates.
Franchisor may independently consult with each Unit Franchisee and Client to determine the amount of funds the Unit Franchisee is owed.
During the Default Period, Subfranchisor agrees to cooperate fully with Franchisor to expedite full and timely payment to each Unit Franchisee.
Subfranchisor will furnish to Franchisor, within 48 hours of Franchisor's request, a copy of all prior client invoices regarding services and supplies provided to all Clients in the Area and Unit Franchisees.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a Subfranchisor is expected to cooperate fully with Anago in several key areas. Specifically, if any legal action is brought against the Subfranchisor's business, the Subfranchisor must immediately provide Anago with copies of all relevant documents and keep Anago informed of the action's progress. If Anago believes the action could impact the Anago franchise system, the Subfranchisor must cooperate fully with Anago's participation in the legal proceedings.
In the event of a default, the Subfranchisor is expected to cooperate fully with Anago to ensure timely payments to Unit Franchisees. The Subfranchisor must also provide Anago with copies of all client invoices within 48 hours of request. Furthermore, Subfranchisors must comply with and assist Anago in complying with Anti-Terrorism Laws, including not dealing with any person listed on the SDN List. A Subfranchisor's failure to comply with these laws can result in immediate termination of the agreement.
Anago may also independently consult with Unit Franchisees and clients to determine the amount of funds owed to the Unit Franchisee. During a default period, the Subfranchisor must cooperate fully with Anago to expedite full and timely payment to each Unit Franchisee. These obligations highlight the importance of a Subfranchisor's role in maintaining the integrity and smooth operation of the Anago franchise system, and the need for close cooperation with Anago to address any issues that may arise.