What release must an Anago franchisee sign as a condition of a permitted transfer?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
ment between You and Us or Our Business Affiliates;
- (ii) You sign a general release of all claims against Us, Our Business Affiliates, and our and their respective officers, directors, shareholders, representatives, agents, successors and assigns;
- (iii) The transferee is not involved in a Competitive Business, whether as a franchisor, licensor or as a licensee or franchisee of any chain or system that is similar in nature or in competition with Us, except that the transferee may be Our existing Unit Franchisee;
- (iv) The transferee pays a transfer fee of the greater of: (a) $2,000, or (b) 10% of the sales price, in lieu of the Initial Fee (the "Transfer Fee"). If the transferee is a spouse or child of the transferor, no Transfer Fee will be charged but a reasonable administrative fee (currently $250) will be charged;
- (vi) The transferee interviews at Our principal office without expense to Us and demonstrates to Our satisfaction that the transferee has the business and personal skills, reputation and financial capacity We require;
- (vii) The transferee satisfactorily completes Our application process;
- (viii) The transferee demonstrates to Our sole satisfaction that he or she has
properly assumed and will be able to comply with all of his or her obligations under this Agreement. You will remain liable for all obligations to Us under this Agreement before the effective date of the transfer and will sign all instruments We reasonably request to evidence these liabilities;
- (viii) At the transferee's expense, the transferee completes the Anago Orientation Program then in effect for new Unit Franchisees upon all terms We reasonably require;
- (ix) We are satisfied that the proposed terms of sale or other factors involved in the transfer do not materially reduce the potential ability of the transferee effectively to assume and carry out his or her obligations under this Agreement; and
- (x) The transferee must sign Our then-current franchise agreement, which may contain terms materially different than this Agreement; and
- (xi) Our approval of any transfer is not a waiver of any future right to approve later transfers.
We have no duty to consider these factors and approval of a proposed transfer is not an expression of opinion of the appropriateness or fairness of the terms of the transfer or the transferee's likelihood of success.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a franchisee transferring their franchise must ensure the transferee signs Anago's current franchise agreement. This new agreement may contain terms that are significantly different from the original agreement.
In addition to signing the current franchise agreement, the transferee must fulfill several other conditions. These include paying a transfer fee, which is the greater of $2,000 or 10% of the sale price, completing Anago's application process, interviewing at Anago's principal office to demonstrate the necessary business skills, and showing that they can comply with all obligations under the agreement. If the transferee is a spouse or child, the transfer fee is waived, but a $250 administrative fee applies.
Anago's approval of the transfer does not waive any claims they may have against the original franchisee, nor does it waive their right to demand exact compliance with the agreement from the transferee. The original franchisee remains liable for all obligations to Anago before the transfer's effective date and must sign any instruments reasonably requested by Anago to evidence these liabilities. This ensures that Anago maintains its rights and protections even after the franchise changes hands.