Is the license granted in the Anago agreement for any Software and Related Materials dependent on the Subfranchise Rights Agreement being in full force and effect?

According to Anago's 2025 Franchise Disclosure Document, the license granted to a Subfranchisee for the use of any Software and Related Materials is contingent upon the Subfranchise Rights Agreement remaining in full force and effect. This license remains active for the term of the agreement, unless it is terminated earlier in accordance with the agreement's terms. This condition emphasizes the interconnectedness of the Subfranchise Rights Agreement and the software license, meaning that any issues affecting the Subfranchise Rights Agreement could also impact the Subfranchisee's ability to use the software.

Upon the expiration or termination of the Anago Subfranchise Rights Agreement, the Subfranchisee is obligated to immediately return all Software and Related Materials to Anago. This includes all copies, translations, compilations, or partial copies of the software and materials. This requirement ensures that Anago retains control over its proprietary software and related materials, preventing unauthorized use or distribution after the agreement ends.

This aspect of the agreement is fairly standard in franchising, as franchisors typically want to protect their intellectual property and ensure consistent brand standards across all franchise locations. Prospective Anago Subfranchisees should carefully consider the implications of this dependency, particularly regarding the potential impact on their business operations if the Subfranchise Rights Agreement is terminated or not renewed. Understanding these terms is crucial for making an informed decision about investing in an Anago franchise.