What is the required amount for the surety bond that must be obtained for an Anago Unit Franchise?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
, home address and telephone number within 10 days of the change. You release Us and Our officers, directors, stockholders, agents and legal successors and assigns from all causes of action, suits, debts, covenants, agreements, damages, judgments, claims and demands, in law or in equity, that You ever had, now have, or that You later may have from Our disclosure of Your name, home address and telephone number.
ARTICLE 9 - INSURANCE
SECTION 9.1 TYPES AND AMOUNTS OF COVERAGE.
You must obtain and maintain insurance, covering Your Anago Unit Franchise, at Your expense, as We require, in addition to all other insurance that may be required by applicable law, Your landlord, lender or otherwise. You are responsible for payment of all deductibles, should a claim arise. All policies must be written by an insurance company reasonably satisfactory to Us with a best rating of "A" or better, and must include at a minimum:
- (a) Commercial general liability insurance and completed operations coverage in the amount of $1,000,000 per person/per occurrence for bodily injury and property damage combined with a general aggregate of $2,000,000, and naming Us as an additional insured in each policy;
- (b) Workers' compensation insurance in acc
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, franchisees are required to obtain a surety bond of $50,000 as part of their insurance coverage requirements. This bond is in addition to other insurance policies Anago requires, such as commercial general liability insurance, workers' compensation insurance, and automobile liability insurance.
The surety bond serves as a financial guarantee that the Anago franchisee will operate their business in compliance with all applicable laws, regulations, and the terms of the franchise agreement. It protects Anago and its customers from potential financial losses resulting from the franchisee's failure to meet these obligations. If a franchisee violates the terms of the agreement or engages in unlawful practices, a claim can be made against the surety bond to cover damages or losses incurred.
For a prospective Anago franchisee, this means they will need to budget for the cost of obtaining a $50,000 surety bond in addition to the premiums for other required insurance coverages. The cost of the surety bond will depend on the franchisee's creditworthiness and other factors, and it is typically a percentage of the total bond amount. Failing to maintain the required surety bond and other insurance coverages could result in a breach of the franchise agreement and potential penalties.