Regarding Anago franchises in California, will Anago interpret the Franchise Agreement as permitting or requiring maximum price limits, given the California Attorney General's view on maximum price agreements?

According to Anago's 2025 Franchise Disclosure Document, Anago will not interpret the franchise agreement as permitting or requiring maximum price limits in California. This is due to the California Attorney General's view that maximum price agreements are per se violations of the Cartwright Act. Anago states that as long as this represents the law of the State of California, they will abide by it.

This means that while Anago may set maximum or minimum prices for products and services offered by Unit Franchises under the Anago System, this policy will not apply in California as long as the Attorney General's view on maximum price agreements remains in effect. Anago franchisees in California will not be held to any maximum price limits set by Anago due to state antitrust laws.

Prospective franchisees in California should be aware of this provision, as it provides them with more pricing flexibility than franchisees in other states. However, it is important to stay informed about any changes in California law that could affect this policy. Franchisees should also consult with legal counsel to ensure they fully understand their rights and obligations under the franchise agreement and California law.