Does Anago negotiate purchase arrangements with approved or designated suppliers?

According to Anago's 2025 Franchise Disclosure Document, Anago may negotiate purchase arrangements with approved or designated suppliers. These arrangements can include pricing and payment terms.

Anago typically requires suppliers to be nationally or regionally recognized when approving them for the system. Anago may consider factors like price, quality, delivery frequency, service standards, community reputation, and reliability when approving suppliers. Anago may concentrate purchases with a few suppliers to potentially get the lowest prices, best advertising support, or services for Anago subfranchisors, unit franchisees, or company-owned units, but this is not guaranteed.

If a franchisee wants to use a supplier that isn't approved, they must seek approval from Anago. Anago can inspect the supplier's facilities and test their products as part of the approval process. Anago will inform the franchisee in writing within 30 days whether the supplier is approved or not. Anago's specific criteria for supplier approval are confidential.

Anago may receive income from franchisee purchases from approved suppliers, potentially as rebates. For example, Anago received rebates ranging from 5% to 20% on franchisee purchases of branded items like apparel and stationery. In the fiscal year ending December 31, 2023, Anago's revenue from required franchisee purchases was $280,409.29, which represented 2.98% of its total revenue of $9,418,968.