Which sections of Article 12 apply to the rights and obligations of the parties upon the termination or expiration of the Anago franchise agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the termination or expiration of this Agreement, the Sections of ARTICLE 12 apply to the rights and obligations of the parties.
SECTION 12.1 CEASE OPERATIONS.
You will immediately cease to operate the Anago Unit Franchise using the Proprietary Marks or System. You will not, directly or indirectly, use any of the Proprietary Property nor represent yourself as a present or former Unit Franchisee of Us or in any other way affiliate yourself with the System. You will immediately cease using all stationery, signage and other materials containing the Proprietary Marks.
You will cease and desist from using websites, social media accounts, and other printed and electronic identifiers associated with the Unit Franchise or with which the Unit Franchise has been identified. On request, You will direct all persons responsible for or controlling such identifiers to transfer them to Us.
SECTION 12.2 PAYMENT OF OUTSTANDING AMOUNTS.
We may retain all fees paid under this Agreement except for refunds expressly required in this Agreement. In addition, within 10 days after the effective date of the termination or expiration, or any later dates as We determine that amounts are due to Us, You must pay to Us all amounts owed to Us, Our Affiliates and Your other creditors that are then unpaid.
SECTION 12.3 DISCONTINUANCE USE OF NAME.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the sections of Article 12 outline the rights and obligations of both the franchisee and franchisor upon the termination or expiration of the franchise agreement. These sections detail specific actions the franchisee must take, such as ceasing operations, discontinuing the use of Anago's name, and paying outstanding amounts.
Section 12.1 mandates that the franchisee immediately stop operating the Anago Unit Franchise, including using any proprietary marks or representing themselves as a current or former franchisee. This extends to ceasing the use of websites, social media accounts, and other identifiers associated with the franchise. Section 12.2 requires the franchisee to pay all outstanding amounts owed to Anago, its affiliates, and other creditors within 10 days of termination or expiration, while also stating that Anago may retain all fees paid, except for refunds expressly required by the agreement.
Section 12.3 requires the franchisee to discontinue use of the Anago name. These obligations ensure a clean break between Anago and the franchisee, protecting Anago's brand and reputation while ensuring all financial matters are settled. Prospective franchisees should carefully review Article 12 to understand their responsibilities upon termination or expiration of their Anago franchise agreement.