factual

Does Anago require written approval before a Subfranchisor can use software/programs other than the NBDS system?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

use these suggestions and no obligation to provide compensation for any suggestion. Subfranchisor may not use any suggestions inconsistent with his or her obligations under this Agreement without the written consent of Franchisor.

  • (l) Record keeping. During the Term of this Agreement, Subfranchisor must maintain and preserve, for at least 10 years from the date of their preparation, full, complete and accurate books, records and accounts with respect to the Subfranchise Business. The Subfranchisor must use only the NBDS system or any other system as required by the Franchisor described in this paragraph. Any other software/programs the Subfranchisor desires to use must be approved in writing by the Franchisor before any such use is permitted.
  • (m) Late Fee. Subfranchisor acknowledges and understands that all required reports, forms, statements and information required to be submitted to Franchisor under this Agreement must be submitted as and when due so as to allow Franchisor to remain competitive in the market place and to facilitate the overall operation of the Anago franchise System. Franchisor will impose a late fee equal to $100 per day, per report, until each missing required report has been submitted for Subfranchisor's f

Source: Item 23 — RECEIPTS (FDD pages 62–298)

What This Means (2025 FDD)

According to Anago's 2025 Franchise Disclosure Document, a Subfranchisor must obtain written approval from Anago before using any software or programs other than the NBDS system. The NBDS system is defined as the software programs licensed to the Subfranchisor for use in their business.

Anago requires Subfranchisors to use either the NBDS system or any other system that Anago requires. This ensures that all Subfranchisors are using compatible systems for reporting and operations. This requirement is in place so that Anago can maintain consistency and control over the data and processes used within the franchise system.

If a Subfranchisor voluntarily fails to use the computer system and Anago proprietary software as directed by Anago, it will be considered a material breach of the agreement. This gives Anago the option to terminate the agreement. This clause emphasizes the importance of adhering to Anago's technology standards and highlights the potential consequences of non-compliance.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.