In the Anago Personal Guaranty, what is the significance of the date associated with the Subfranchise Rights Agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Debtor grants to Secured Party a first priority security interest in Debtor's Business Assets (the "Collateral"). For purposes of this Agreement, Debtor's "Business Assets" shall mean: (a) all of Debtor's accounts receivable arising out of, or in connection with, the operation of Debtor's Anago Subfranchise Business, existing as of the date of this Agreement and which come into existence during the Term of the Anago Subfranchise Rights Agreement by and between Debtor and Secured Party, including notes, negotiable instruments, contracts and the Unit Franchisee obligations for the payment of money, all client accounts and their account receivables, all proceeds owing from trips, clubs, parties, lessons, video studies and any other services or activities connected with the operation of the Subfranchise Business (the "Accounts Receivable"); (b) all books and records pertaining to the Debtor's Accounts Receivable; (c) all equipment, furniture and fixtures located at any owned or controlled site of Debtor; (d) all contracts related to each and every Business within the Area including all Anago Unit Franchise Agreements, promissory notes and any leases to which Debtor is a party; (e) all intangible rights related to this Agreement and the Subfranchise Business; and (f) all proceeds upon sale or other disposition of any of the foregoing. The capitalized terms in this Agreement shall have the meanings defined herein and in the Subfranchise Rights Agreement by and between Debtor and Secured Party.
TO SECURE:
- (a) Performance of each agreement of Debtor contained in that certain Subfranchise Rights Agreement between Debtor and Secured Party, dated
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the date associated with the Subfranchise Rights Agreement (SRA) is crucial in defining the scope and duration of the security interest granted by the subfranchisee (Debtor) to Anago (Secured Party). This date establishes when the Debtor's business assets, including accounts receivable, equipment, contracts, and intangible rights, become subject to Anago's security interest. The security interest exists during the term of the Anago Subfranchise Rights Agreement.
The date ensures that Anago has a secured interest in the subfranchisee's business assets, providing Anago with a legal claim to those assets in case the subfranchisee fails to meet their obligations under the Subfranchise Rights Agreement. This includes the subfranchisee's performance of the agreement and the repayment of any advanced or expended sums by Anago for the maintenance or preservation of the collateral.
For a prospective Anago subfranchisee, this means that their business assets are encumbered by Anago's security interest from the date of the Subfranchise Rights Agreement. Should the subfranchisee default on their obligations, Anago has the right to seize and liquidate those assets to recover any losses. Therefore, understanding the terms and conditions of the Subfranchise Rights Agreement, and the implications of the security interest, is essential for any potential Anago subfranchisee.