Does Anago provide any material benefits to franchisees if they purchase from approved sources?

According to Anago's 2025 Franchise Disclosure Document, Anago does not provide any material benefits to franchisees who purchase from approved sources. However, Anago may negotiate purchase arrangements, including pricing and payment terms, with approved or designated suppliers.

Anago requires franchisees to purchase or lease computer equipment according to their specifications from Anago or their designee. Franchisees must also use hardware and software systems designated by Anago under the NBDS License Agreement. Anago retains the right to change the system at any time, requiring franchisees to comply with new requirements, including offering new products or discontinuing old ones.

To maintain uniformity and standards, Anago provides specifications or required suppliers for certain items. They are the only approved supplier for the NBDS System. Specifications may include standards for enhancing the system's image and minimum standards for safety and appearance. Anago also requires franchisees to use designated internet vendors for website creation, maintenance, and email/web hosting. These specifications are communicated in the manuals or in writing.

Anago may derive income from franchisee purchases through rebates from suppliers, based on the quantity of purchases made by franchisees and subfranchisors. In the fiscal year ending December 31, 2023, Anago derived $280,409.29, or 2.98% of its total revenue ($9,418,968), from required franchisee purchases of branded items. Franchisees are required to be covered under the Anago National Insurance program for the entire term of the agreement.