Does Anago require subfranchisees to purchase or lease computer equipment from Anago or its designee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
For any products or services for which we do not then have an approved or designated vendor, you may use any vendor that meets our specifications, as set forth in the Manuals.
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 the NBDS License Agreement. Anago is the only approved supplier for the NBDS System.
This requirement ensures that all subfranchisees use a standardized system, which Anago believes is necessary to maintain uniform and high standards within the Anago system. This standardization helps to retain and enhance the goodwill of the system and acceptance in the market.
In addition to computer equipment, Anago also requires subfranchisees to use designated internet vendors for website creation and maintenance, as well as email and web hosting. Specifications for required or permitted products and services are communicated in the manuals or in writing. These required purchases or leases are estimated to be approximately 3% - 5% of the cost to establish your Anago Subfranchise Rights Business and approximately 0.5% - 1% of your total annual operating expenses.
Prospective subfranchisees should be aware that Anago has the right to change the system at any time and for any reason, and subfranchisees must comply with all such requirements. This includes offering and selling new or different products or services specified by Anago and discontinuing the offer and sale of products and services that Anago no longer approves. Subfranchisees should carefully consider these requirements and the potential costs associated with them before investing in an Anago subfranchise.