Can Anago modify my Area beyond the National Account exception?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
However, if you fail to schedule the minimum number of Client Bids that we require then, in addition to our other rights under the Subfranchise Rights Agreement, we may reduce or redefine the Area upon notice to you.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, except as described below and provided you are in compliance with your obligations under your Subfranchise Rights Agreement, we will not, during the Term of your Subfranchise Rights Agreement, grant any other person the right to act as our subfranchisor in the Area.
Source: Item 12 — TERRITORY (FDD pages 36–38)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago can modify a subfranchise area if the franchisee fails to schedule the minimum number of client bids required. Beyond this and the National Account exception, Anago may not otherwise modify the franchisee's area.
Specifically, the FDD states that if a subfranchisee fails to schedule the minimum number of Client Bids that Anago requires, Anago has the right to reduce or redefine the Area upon notice to the subfranchisee, in addition to any other rights Anago has under the Subfranchise Rights Agreement. This condition creates a performance-based risk for the franchisee, as failure to meet the bid requirements can lead to a reduction in their territory, and consequently, their potential market.
It is important to note that the franchisee will not receive an exclusive territory. The franchisee may face competition from other franchisees, from outlets that Anago owns, or from other channels of distribution or competitive brands that Anago controls. However, except for the failure to schedule minimum client bids and National Accounts, Anago will not grant any other person the right to act as their subfranchisor in the Area during the Term of the Subfranchise Rights Agreement, provided the franchisee is in compliance with their obligations under their Subfranchise Rights Agreement.