What is the maximum unsatisfied final judgment amount that triggers automatic termination of the Anago franchise agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
ainst or consented to by You and the petition is not dismissed within 45 days; - (iv) You are adjudicated as bankrupt;
- (v) a bill in eq
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a final judgment exceeding $5,000 that remains unsatisfied for 30 days or longer can trigger the automatic termination of the franchise agreement. However, this termination can be avoided if a supersedeas bond is filed.
This clause protects Anago from franchisees who may be in severe financial distress, as an unsatisfied judgment of this size could indicate an inability to meet financial obligations. For a prospective franchisee, this means maintaining financial stability is critical to avoid potential termination.
It is important to note that the termination is automatic, meaning Anago does not need to provide notice or an opportunity to cure the default. Filing a supersedeas bond, which essentially guarantees payment of the judgment if the franchisee's appeal is unsuccessful, is a way to prevent termination while contesting the judgment.