What is the required surety bond amount that an Anago franchisee must obtain?
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. This bond is in addition to other insurance requirements, 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 and the franchise agreement. It protects Anago and its customers from potential damages or losses resulting from the franchisee's actions or failure to fulfill their obligations.
The franchisee is responsible for the cost of the surety bond and must ensure that the insurance company providing the bond is reasonably satisfactory to Anago, with a Best rating of "A" or better. Furthermore, the franchisee is responsible for covering all deductibles should any claims arise against the insurance policies, including the surety bond.