Does Anago have to purchase or lease computer equipment from Anago or its designee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]
ITEM 8 - RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
Required Purchases
We require you to purchase or lease the computer equipment in accordance with our specifications, from us or our designee, which specifications are subject to change throughout the term of your Subfranchise Rights Agreement. We currently require you to use certain hardware and software systems designated by us, pursuant to that certain NBDS License Agreement (in the form attached as Exhibit D to the Disclosure Document) which you and we will enter into.
We have the right to supplement, improve and otherwise change the System at any time and for any reason, and you must comply with all such requirements, including offering and selling new or different products or services specified by us and discontinuing the offer and sale of products and services we no longer approve.
Specifications; Required and Approved Suppliers
To help retain the uniform and high standards necessary to maintain and enhance the goodwill of the System and acceptance in your market, we provide specifications and/or required suppliers for the purchase or lease of certain items, which each Subfranchisor currently is required to retain to provide support services in connection with certain software. We are the only approved supplier for the NBDS System. Specifications may include standards for enhancing the System's image and minimum standards for safety, appearance and other factors. We also currently require that you use our designated internet vendors in connection with the creation and maintenance of your website, and email/webhosting. We will communicate specifications for required or permitted products and services in the Manuals or otherwise in writing.
We estimate that the required purchases or leases described in the above paragraphs are approximately 3% - 5% of the cost to establish your Anago Subfranchise Rights Business and approximately 0.5% - 1% of your total annual operating expenses.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, subfranchisees are required to purchase or lease computer equipment from Anago or its designee. The specifications for this equipment are subject to change throughout the term of the Subfranchise Rights Agreement. Anago also requires subfranchisees to use certain hardware and software systems designated by them, pursuant to an NBDS License Agreement.
Anago retains the right to modify the System at any time, and subfranchisees must comply with these changes, including offering new products or discontinuing existing ones. To maintain uniformity and goodwill within the Anago system, Anago provides specifications or required suppliers for certain items needed to provide support services related to specific software. Anago is the only approved supplier for the NBDS System.
In addition, Anago requires subfranchisees to use their designated internet vendors for website creation, maintenance, and email/web hosting. The FDD states that the estimated cost of these required purchases or leases is approximately 3% - 5% of the initial cost to establish an Anago Subfranchise Rights Business and approximately 0.5% - 1% of total annual operating expenses.
Prospective franchisees should be aware that Anago may derive income from these required purchases. It is important for potential franchisees to carefully review the NBDS License Agreement and understand the specifications and costs associated with the required computer equipment, hardware, and software.