Does Anago provide guidance on maintaining non-joint employer status with franchisee employees?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
as the court may judicially determine or indicate is a reasonable restriction under the circumstances involved.
SECTION 13.2 INDEPENDENT COVENANTS.
The parties agree that the covenants in ARTICLE 13 are independent of any other provision of this Agreement. You agree that the existence of any claim You may have against Us or any of Our Affiliates, regardless of whether under this Agreement, is not a defense to Our enforcement of these covenants.
ARTICLE 14 - INDEPENDENT CONTRACTOR AND INDEMNIFICATION
SECTION 14.1 INDEPENDENT STATUS.
The parties agree that this Agreement does not create a fiduciary relationship between them. You are an independent contractor and unless expressly provided to the contrary, nothing in this Agreement is intended to designate either party an agent, legal representative, subsidiary, joint venture, partner, employee, Affiliate or servant of the other party for any purpose, and nothing herein is intended to make Us an employer or co-employer of Your employees, any such relationship being expressly disclaimed. The parties agree that nothing in this Agreement authorizes You to make any Agreement, warranty or representation for Us, nor to incur any debt or other obligation in Our name. Any misrepresentations of the Anago System contract specifications by You will void any contract entered into with the Client.
You will take all affirmative action We request to indicate that You are an independent contractor, including placing and maintaining a plaque in a conspicuous place within the Premises and a notice on all stationery, business cards, sales literature, contracts and similar documents that states that the Anago Unit Franchise is independently owned and operated by You. The content of any plaque and notice is subject to Our written approval.
SECTION 14.2 INDEMNIFICATION.
You are responsible for all losses or damages from contractual liabilities to third persons from the possession, ownership and operation of the Anago Unit Franchise and for all claims and demands for damages to property or for injury, illness or death of persons directly or indirectly resulting from Your actions. You will indemnify Us from all costs, losses and damages (including reasonable attorneys' fees and costs, even if incident to appellate, post judgment or bankruptcy proceedings) from claims brought by third parties involving (a) Your ownership or operation of the Anago Unit Franchise or (b) from Your breach of this Agreement unless caused by Our gross negligence or intentional misconduct. You must also defend, indemnify and hold Us and AFI harmless from and against any claims asserting that AFI or We are the employer or joint or coemployer of You or Your employees. These indemnity obligations continue in full effect even after the expiration or termination of this Agreement. We will notify You of any claims and You will be given the opportunity to assume the defense of the matter.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the agreement emphasizes the independent contractor relationship between Anago and its franchisees. It explicitly states that the agreement is not intended to create an employer/co-employer relationship between Anago and the franchisee's employees. The franchisee is responsible for all employment-related decisions, including hiring, training, compensation, and termination. Anago does not take responsibility for claims made by the franchisee's employees or contractors. Franchisees must indemnify Anago from any such claims.
To further emphasize the independent nature of the franchise, Anago requires franchisees to take affirmative actions indicating their independent contractor status. This includes displaying a plaque within their premises and including a notice on all business-related documents stating that the Anago Unit Franchise is independently owned and operated. The content of these notices and plaques is subject to Anago's written approval, ensuring consistency and accuracy in portraying the relationship.
Anago also stipulates that franchisees are solely responsible for following all applicable regulations and laws related to operating their Anago Unit Franchise. This includes compliance with labor laws and ensuring employees keep a neat appearance and adhere to any dress codes required, subject to client requirements. The franchisee's responsibility extends to paying employee wages for services performed on Anago accounts, with failure to do so constituting a material default under the franchise agreement. These measures are designed to reinforce the franchisee's role as the employer and maintain a clear distinction between Anago and the franchisee's staff.