How long does an Anago Subfranchisor have to cure a default before the Franchisor determines the remedies?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
aults and whether the defaults were cured by Subfranchisor.
- (n) If Subfranchisor fails to use the proprietary software or systems as directed by the Franchisor.
Section 8.3 - Termination by Franchisor - After Notice and Right to Cure
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.
Section 8.4 - Cross Default
If Subfranchisor commits a default in the performance of any of the covenants, conditions or agreements contained in any other agreement between Subfranchisor and Franchisor or its Affiliates, Subfranchisor shall also have breached this Agreement and Franchisor shall have all of the remedies available to it under this Agreement, including, but not limited to, the right to terminate this Agreement pursuant to Section 8.2, in addition to Franchisor's rights, if any, under such other agreement(s).
ARTICLE 9 - OBLIGATIONS UPON TERMINATION OR EXPIRATION
Upon termination or expiration (through default or otherwise) of this Agreement (including any transfer by Subfranchisor in accordance with this Agreement), for any reason, Subfranchisor shall comply with the provisions of this ARTICLE 9 and all other obligations that, by their nature, survive the expiration or termination if this Agreement.
Section 9.1 - Payment of Outstanding Amounts
Franchisor may retain all fees paid under this Agreement. In addition, within 10 days after the effective date of the termination or expiration of this Agreement, or any later dates as it is
determined that amounts are due to Franchisor, Subfranchisor will pay to Franchisor all amounts owed to Franchisor and its Affiliates that are then unpaid.
Section 9.2 - Discontinue Use of Proprietary Marks and Confidential Information
- (a) Subfranchisor will take all action as may be necessary to cancel any fictitious, trade or assumed name registration, or equivalent registration that contains the name "Anago" or any other Proprietary Mark or colorable imitation of any trademark, trade name or service mark of Franchisor or its Affiliates. Subfranchisor will furnish Franchisor with evidence of compliance with this obligation to cancel the registration within 30 days after termination or expiration of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a Subfranchisor typically has 30 days after receiving written notice of default from Anago to remedy the default. The notice will specify the nature of the default, and the Subfranchisor must provide evidence of the cure that is satisfactory to Anago. If the default remains uncured after this 30-day period, all rights of the Subfranchisor under the agreement terminate immediately without any additional notice, unless applicable law requires a longer period.
However, there are exceptions to this 30-day cure period. If the default involves a serious threat to public health or safety, the Subfranchisor has only 5 days to correct the issue after receiving written notice. If the cure cannot be reasonably completed within 5 days, the Subfranchisor must begin taking reasonable steps to cure the issue within this timeframe and complete the cure promptly within 30 days after the notice. Similarly, if the Subfranchisor violates any health, safety, or sanitation law, ordinance, or regulation, they have 3 days to correct the failure after written notice. As with the previous exception, if a complete cure cannot be reasonably achieved in 3 days, the Subfranchisor must start taking steps to cure within this period and finish within 30 days of the notice.
Furthermore, if the Subfranchisor is in a state of default prior to the expiration of the agreement term or enters a state of default during the last 9 months remaining in the term, the default must be cured before renewal or obtaining a Successor Anago Subfranchise Rights Agreement. If the default is not cured or is determined to be incurable within 60 days of the expiration of the agreement, all remedies to cure, if any, will be at the sole discretion of Anago before a Successor Anago Subfranchise Rights Agreement may be obtained. This means that the ability to renew the franchise agreement depends on resolving any defaults within these specific timeframes.