Is Anago required to pay taxes, assessments, and liens on the Collateral?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
To pay before delinquency, all taxes, assessments and liens now or hereafter imposed on the Collateral, and to maintain in force at all times, fire and other insurance policies (including all risk, and earthquake insurance) on the Collateral.
If Debtor fails to make any payment or do any act as herein required, then Secured Party, without obligation to do so and without notice to or demand upon Debtor, may make such payments and do such acts as Secured Party may deem necessary to protect its security interest in the Collateral, Secured Party being hereby authorized (without limiting the general nature of the authority hereinabove conferred) to take possession of the Collateral or any part thereof and to pay, purchase, contest or compromise any security interest, encumbrance, charge or lien which, in the judgment of Secured Party, appears to be prior or superior to or to jeopardize the security interest granted hereby, and in exercising any such powers and authority to incur necessary expenses, including attorneys' fees.
Debtor hereby agrees to repay immediately and without demand all sums expended by Secured Party pursuant to the provisions of this paragraph.
Debtor shall be in default under this Agreement upon the happening of any of the following events or conditions:
(a) Default by Debtor in the payment of any or all of the indebtedness, obligations or liabilities secured hereby beyond the applicable cure periods, or failure by Debtor to perform any agreement herein contained or secured hereby.
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Upon any such default, Secured Party, at its option, without demand upon or notice to Debtor, may declare all indebtednesses, obligations and liabilities secured hereby to be immediately due and payable, and Secured Party shall have all the rights and remedies provided a secured party under the Uniform Commercial Code and may proceed to foreclose the security interest created hereby according to law, and may, at its option, and it is hereby empowered, with or without foreclosure action, to enter upon the Premises or any other premises where the Collateral or any part thereof may be and take possession thereof and remove the Collateral or any part
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the franchisee, referred to as the 'Debtor,' is responsible for paying all taxes, assessments, and liens on the Collateral before they become delinquent. The franchisee must also maintain fire and other insurance policies, including all-risk and earthquake insurance, on the Collateral at all times.
If the franchisee fails to make any required payments or perform any necessary actions, Anago, referred to as the 'Secured Party,' has the option, but not the obligation, to make those payments or perform those acts to protect its security interest in the Collateral. Anago is authorized to take possession of the Collateral and pay, purchase, contest, or compromise any security interest, encumbrance, charge, or lien that could jeopardize its security interest.
The franchisee agrees to immediately repay Anago for all sums expended to protect the collateral. A failure to pay is considered a default under the agreement, which allows Anago to declare all obligations immediately due and payable and to exercise its rights as a secured party under the Uniform Commercial Code, including foreclosing on the security interest.