What is the purpose of the Anago Subfranchise Rights Agreement included as Exhibit A?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Under your Anago Subfranchise Rights Agreement, you will be licensed and granted the right to operate your Subfranchise in those counties as defined in the Anago Subfranchise Rights Agreement (the "Area") during the term of the Subfranchise Rights Agreement so long as you are not in default of the agreement. The area granted will include a population delineated by the boundaries of a standard, statistical metropolitan area, sufficient to encompass the specified
population (with a minimum population of 500,000), in accordance with the Subfranchise Program purchased. You and we will agree on the defined Area prior to signing the Anago Subfranchise Rights Agreement. However, if you fail to schedule the minimum number of Client Bids that we require then, in addition to our other rights under the Subfranchise Rights Agreement, we may reduce or redefine the Area upon notice to you.
ARTICLE 15 - DEFINITIONS
Section 15.1 - Definitions
As used in this Agreement, the Exhibits attached and any other document signed incidental to this Agreement and any exhibits to these documents, the following terms have the following meanings:
"Agreement" means this Anago Subfranchise Rights Agreement, as amended, supplemented or otherwise modified by an agreement in writing signed by Subfranchisor and Franchisor under Section 16.2.
"Agreement Date" means the date the President of Franchisor executes this Agreement.
"Area" means the Subfranchisor's area of responsibility where Subfranchisor may sell Franchises as stated in Section 1.2 and as identified in the Data Sheet attached to this Agreement.
You must operate your Anago Subfranchise Rights Business from an office location approved by us (the "Premises"), which office must be within your Area (as defined in Item 12). The Premises must be equipped with a business telephone, computer system with Internet access, facsimile and electronic mail capabilities, and computer software that meets our standards and specifications. If you lease the Premises from a third party, you and the landlord for the leased premises must sign and deliver to us a collateral assignment of your rights under the lease for the premises in the form attached to your Anago Subfranchise Rights Agreement as Exhibit X. Under the collateral assignment agreement, you must, at our option, assign all of your rights under the lease to us upon termination or expiration of your Anago Subfranchise Rights Agreement.
You must secure your Premises within 90 days of signing your Subfranchise Rights Agreement. If you fail to do so, we have the right to terminate your Subfranchise Rights Agreement.
Time Between Signing of Anago Subfranchise Rights Agreement and the Opening of the Anago Subfranchise Rights Business
The typical length of time between the earlier of signing of the Subfranchise Rights Agreement or first payment of consideration for the Anago Subfranchise Rights Business and the opening of the Anago Subfranchise Rights Business varies from 1 to 3 months. The factors that affect this time frame usually include the time when you receive and complete the Anago Training Program to our satisfaction, the time required to secure your office space, and the time required to register your franchise disclosure document, if necessary. You must commence operation of the Anago Subfranchise Rights Business within 30 days of completing the initial training program, and in any event, within 180 days of signing the Subfranchise Rights Agreement.
Source: Item 22 — CONTRACTS (FDD page 62)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Anago Subfranchise Rights Agreement defines the terms and conditions under which a subfranchisor is granted the right to operate a subfranchise. Item 12 states that the subfranchisor is licensed and granted the right to operate their subfranchise in specific counties, referred to as the "Area," as defined in the Anago Subfranchise Rights Agreement, for the duration of the agreement, provided they are not in default. Prior to signing the agreement, the subfranchisor and Anago will agree on the defined Area, which will include a population delineated by the boundaries of a standard, statistical metropolitan area, sufficient to encompass the specified population (with a minimum population of 500,000), in accordance with the Subfranchise Program purchased. However, Anago retains the right to reduce or redefine the Area if the subfranchisor fails to schedule the minimum number of Client Bids required.
Item 15 defines the term "Agreement" as the Anago Subfranchise Rights Agreement, including any amendments or modifications made in writing and signed by both the subfranchisor and Anago. The "Agreement Date" is defined as the date the President of Anago executes the agreement. The agreement also refers to the "Area" as the subfranchisor's area of responsibility where they may sell franchises, as stated in Section 1.2 and identified in the Data Sheet attached to the agreement.
Item 11 mentions that upon termination or expiration of the Anago Subfranchise Rights Agreement, the subfranchisor may be required to assign their rights under the lease for their business premises to Anago, if Anago chooses. The subfranchisor must secure their business premises within 90 days of signing the Subfranchise Rights Agreement, and failure to do so may result in termination of the agreement. The typical time between signing the agreement and opening the Anago Subfranchise Rights Business ranges from 1 to 3 months, depending on factors such as completion of the Anago Training Program, securing office space, and registering the franchise disclosure document, if necessary. The subfranchisor must commence operation within 30 days of completing the initial training program, and in any event, within 180 days of signing the agreement.
In summary, the Anago Subfranchise Rights Agreement outlines the rights, responsibilities, and obligations of both Anago and the subfranchisor, including territory, term, conditions for renewal, and potential termination. It is a legally binding document that governs the relationship between the parties and protects the interests of both Anago and the subfranchisor.