What sections of the Anago Subfranchise Rights Agreement are deleted and replaced regarding limitation of actions and waiver of class actions?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- LIMITATION OF ACTIONS; WAIVER OF CLASS ACTIONS. Section 13.9 (Limitation of Actions) and Section 13.10 (Waiver of Class Actions) of the Subfranchise Rights Agreement are deleted and replaced with the following:
THE PARTIES AGREE THAT CLAIMS OF ANY OTHER PARTY OR PARTIES SHALL NOT BE JOINED WITH ANY CLAIMS ASSERTED IN ANY ACTION OR PROCEEDING BETWEEN YOU AND US. EXCEPT FOR CLAIMS ARISING FROM YOUR NON-PAYMENT OR UNDERPAYMENT OF AMOUNTS YOU OWE US OR OUR AFFILIATE, ANY AND ALL CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR OUR RELATIONSHIP WITH YOU WILL BE BARRED UNLESS A JUDICIAL OR ARBITRATION PROCEEDING IS COMMENCED WITHIN ONE (1) YEAR FROM THE DATE ON WHICH THE PARTY ASSERTING THE CLAIM KNEW OR SHOULD HAVE KNOWN OF THE FACTS GIVING RISE TO THE CLAIMS. HOWEVER, NOTHING CONTAINED IN THIS SECTION SHALL CONSTITUTE A CONDITION, STIPULATION, OR PROVISION PURPORTING TO BIND ANY PERSON TO WAIVE COMPLIANCE WITH ANY PROVISION OF THE ILLINOIS FRANCHISE DISCLOSURE ACT OR ANY OTHER LAW OF THE STATE OF ILLINOIS, TO THE EXTENT APPLICABLE.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Section 13.9, concerning the Limitation of Actions, and Section 13.10, addressing the Waiver of Class Actions, within the Subfranchise Rights Agreement are entirely removed and substituted with new provisions.
The replacement stipulates that parties are prohibited from combining claims with those of other parties in any legal action between the franchisee and Anago. Except for claims related to non-payment or underpayment, all claims arising from the agreement or the relationship must be initiated within one year from when the party knew or should have known about the facts leading to the claim. This limitation does not waive compliance with the Illinois Franchise Disclosure Act or any other applicable Illinois law.
This change has significant implications for Anago subfranchisees, as it sets a strict one-year limit for initiating legal claims (excluding payment-related claims) and prevents franchisees from participating in class action lawsuits against Anago. However, the clause also includes a provision that it does not force anyone to waive rights under the Illinois Franchise Disclosure Act or other Illinois laws, offering some protection to franchisees in that state.