What specific computerized management system is an Anago Subfranchisor currently required to install?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
a) the preparation of advertising brochures, (b) compiling a list of local suppliers, (c) compiling a list of prospective clients, and (d) the set up for local advertising for the Unit Franchisees.
- (b) Computer System/Software. Subfranchisor must provide financial and business records and other information to Franchisor according to reporting formats, methodologies and time schedules that Franchisor establishes. As part of these record-keeping requirements, Franchisor requires Subfranchisor, at its sole cost and expense, to obtain and use the computer hardware and software system (including Franchisor's proprietary software) as designated by Franchisor from time to time in the day-to-day operation of Subfranchisor's business. Currently, Subfranchisor is required to install the computerized NBDS management systems and accept the NBDS (in accordance with the NBDS License Agreement attached as Exhibit D to the FDD) which may be modified at any time by in response to business, operations and marketing conditions. Subfranchisor shall enter into any software licenses, terms of use and software maintenance agreements and pay any license and maintenance fees required by Franchisor or its Affiliates. Subfranchisor shall replace any such systems when deemed advisable by Franchisor given the age, cost to operate, condition of the system then in use, the then-current and anticipated technology, the information then in use with other Subfranchisors of the System, the needs of the System, and any other factors that may be relevant. If the Subfranchisor voluntarily fails to use the computer system and Anago proprietary software as directed by the Franchisor it will be a material breach under this agreement that the Franchisor at its option may terminate this agreement.
Section 2.4 - Billing and Collection System
(a) Invoicing. Under the Unit Franchise Agreements, each Unit Franchisee appoints Subfranchisor as its agent for purposes, throughout the term of the Unit Franchise Agreement, of billing and collecting for services the Unit Franchisee provides to its Clients.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a Subfranchisor is required to install the computerized NBDS management systems. The Subfranchisor must accept the NBDS in accordance with the NBDS License Agreement, which may be modified at any time by Anago in response to business, operations, and marketing conditions. The Subfranchisor is responsible for entering into any software licenses, terms of use, and software maintenance agreements, and for paying any license and maintenance fees required by Anago or its affiliates.
Anago retains the right to require the Subfranchisor to replace these systems based on factors such as age, cost to operate, condition of the system, current and anticipated technology, information in use with other Subfranchisors, the needs of the system, and other relevant factors. Failure to use the computer system and Anago proprietary software as directed by Anago constitutes a material breach of the agreement, potentially leading to termination of the agreement at Anago's discretion.
During the term of the agreement, the Subfranchisor must maintain and preserve full, complete, and accurate books, records, and accounts with respect to the Subfranchise Business for at least 10 years from the date of their preparation. The Subfranchisor must use only the NBDS system or any other system as required by Anago. Any other software/programs the Subfranchisor desires to use must be approved in writing by Anago before any such use is permitted. This ensures that Anago has control over the data and systems used within its franchise network, maintaining uniformity and facilitating oversight.