Is Anago obligated to use any system improvements ('Innovations') suggested by the franchisee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (k) Operational Suggestions. Subfranchisor is encouraged to submit suggestions in writing to Franchisor for improving elements of the System, such as products, services, equipment, service format, advertising and any other relevant matters, which will be considered by Franchisor when adopting or modifying standards, specifications and procedures for the System. Subfranchisor agrees that any suggestions made by Subfranchisor under this Agreement are the exclusive property of Franchisor. Franchisor has no obligation to use these suggestions and no obligation to provide compensation for any suggestion. Subfranchisor may not use any suggestions inconsistent with his or her obligations under this Agreement without the written consent of Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, while franchisees are encouraged to submit suggestions for improving the Anago system, Anago is under no obligation to use these suggestions. Specifically, franchisees can suggest improvements to products, services, equipment, service format, advertising, and other relevant aspects of the system. Anago will consider these suggestions when adopting or modifying standards, specifications, and procedures.
Any suggestions made by the franchisee become the exclusive property of Anago. This means that Anago has the sole right to use, modify, or discard any suggestions without any obligation to compensate the franchisee. The franchisee is also prohibited from using any suggestions that are inconsistent with their obligations under the franchise agreement without Anago's written consent.
This arrangement is fairly typical in franchising. Franchisors want to maintain tight control over their brand standards and operating procedures. While franchisee input is often valued, the franchisor ultimately decides which changes to implement. This clause ensures that Anago retains ownership of any improvements or innovations developed within the franchise system, even if they originate from a franchisee's suggestion.