What is Anago's responsibility regarding licensing requirements for the Subfranchisor?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Subfranchisor shall comply with, and assist Franchisor to the fullest extent possible in Franchisor's efforts to comply with, the Anti-Terrorism Laws (as defined below). Subfranchisor shall not hire nor have any dealings with any person listed on the SDN List, as it may be modified from time to time. Subfranchisor is solely responsible for ascertaining what actions must be taken by Subfranchisor to comply with all Anti-Terrorism Laws. Subfranchisor specifically acknowledges and agrees that Subfranchisor's indemnification obligations under this Agreement pertain to Subfranchisor's obligations under this Section. Any misrepresentation by Subfranchisor under this Section, or any violation of any Anti-Terrorism Laws by Subfranchisor, Subfranchisor's owners, principals or employees, shall constitute grounds for immediate termination of this Agreement and any other agreement Subfranchisor has entered into with Franchisor or its Affiliates. As used herein, "Anti-Terrorism Laws" means Executive Order 13224 issued by the President of the United States, the Terrorism Sanctions Regulations (Title 31, Part 595 of the U.S. Code of Federal Regulations), the Foreign Terrorist Organizations Sanctions Regulations (Title 31, Part 597 of the U.S. Code of Federal Regulations), the Cuban Assets Control Regulations (Title 31, Part 515 of the U.S. Code of Federal Regulations), the USA PATRIOT ACT, and all other present and future federal, state and local laws, ordinances, regulations, policies, lists and any other requirements of any Governmental Authority (including, without limitation, The United States Department of Treasury Office of Foreign Assets Control) addressing or in any way relating to terrorist acts and acts of war.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
Based on the 2025 FDD, Anago's responsibilities regarding licensing requirements for its Subfranchisors are not explicitly detailed within the provided excerpts. The excerpts do not specify whether Anago is responsible for obtaining or assisting the Subfranchisor in obtaining any required licenses or permits to operate their Anago franchise. The FDD excerpts do mention the Subfranchisor's responsibility to comply with Anti-Terrorism Laws. The Subfranchisor is solely responsible for ascertaining what actions must be taken to comply with all Anti-Terrorism Laws. Any misrepresentation by Subfranchisor under this Section, or any violation of any Anti-Terrorism Laws by Subfranchisor, Subfranchisor's owners, principals or employees, shall constitute grounds for immediate termination of this Agreement and any other agreement Subfranchisor has entered into with Franchisor or its Affiliates.
However, the FDD excerpts do outline several obligations of the Subfranchisor, including the need to use designated computer systems and software, maintain required insurance policies, and adhere to confidentiality and information security protocols. The Subfranchisor is also responsible for screening franchise candidates and ensuring they meet Anago's qualifications. These stipulations highlight the Subfranchisor's role in maintaining operational standards and legal compliance within their designated area.
Since the excerpts do not provide specific information on Anago's responsibility for licensing requirements, prospective Subfranchisors should directly inquire with Anago about any assistance or obligations related to obtaining necessary licenses and permits. This inquiry should clarify what support, if any, Anago provides to ensure Subfranchisors are fully compliant with all applicable regulations.