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What are the specific requirements for Anago franchisees to comply with all applicable laws and regulations?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

liability insurance, protecting Us and Our Unit Franchisees against all claims from the use of the item within the System.

SECTION 4.5 SALES OF PRODUCTS AND SERVICES TO YOUR AFFILIATES.

All sales of products and services to Your affiliates, if any, must be on terms regularly applicable to Your nonaffiliated Clients, and in all cases must be arm's length.

SECTION 4.6 COMPLIANCE WITH LAWS, RULES AND REGULATIONS.

You will comply with all federal, state, and local laws, rules and regulations, and will timely obtain, maintain and renew when required all permits, certificates, or licenses necessary for the proper conduct of the Anago Unit Franchise under this Agreement, including qualification to do business, fictitious, trade or assumed name registration, occupational licenses, and OSHA requirements. You will provide copies of all inspection reports, warnings, certificates and ratings, issued by any governmental entity during the Term on the conduct of the Anago Unit Franchise that indicates Your material noncompliance with any applicable law, rule or regulation, to Us within 2 days of Your receipt of these items. We accept no responsibility for any of Your operations, janitorial or otherwise.

SECTION 4.7 TAX PAYMENTS; CONTESTED ASSESSMENTS.

You will promptly pay when due all taxes required by any federal, state or local tax authority including unemployment taxes, withholding taxes, income taxes, tangible commercial personal property taxes, real estate taxes, intangible taxes and all other indebtedness You incur in the conduct of the Anago Unit Franchise. You will pay to Us an amount equal to any sales tax, goods and services taxes, gross receipts tax, or similar tax imposed on Us for any payments to Us required under this Agreement, unless the tax is measured by or involves the net income or Our corporate status in a state. If We pay any tax for which You are responsible, You will promptly reimburse Us the amount paid. If there is any bona fide dispute as to liability for taxes assessed or other indebtedness, You may contest the validity or the amount of the tax or indebtedness in accordance with procedures of the taxing authority or applicable law. However, You will not permit a tax sale or seizure by levy or signing or similar writ or warrant, or attachment by a creditor, to occur against any assets used in the Anago Unit Franchise.

SECTION 4.8 CLIENT SURVEYS; CLIENT LIST.

You will present to Clients all Performance Evaluation forms We require and will participate and/or request Our Clients to participate in all marketing surveys performed by or for Us. You will maintain a Current Client list containing each Client's name, address, telephone number and zip/postal code and supply a copy of the list to Us on a quarterly basis. You must participate in any process We develop to record all Client information. We own all Client lists of

Your Unit Franchise. This list is Our Confidential Information and will not be disclosed by You to any third party.

SECTION 4.9 INSPECTIONS.

You understand and agree that for the protection of the System and Proprietary Marks that quality control is necessary to ensure we and all our Franchisees not only continue growing but deliver the best quality of service. Therefore, You will permit Us and/or Our representatives to enter Your Premises or buildings where You are providing services at any time for purposes of conducting inspections. You will cooperate fully with Us and/or Our representatives in inspections by rendering assistance as we or they reasonably request and by permitting us or them, at our or their option, to observe how You are rendering the services, to confer with Clients and Your employees (provided, however, that if We notice any deficiencies in Your employees' performance, We will notify You of the deficiencies and You, in turn, will correct such deficiencies as described below). We may also remove samples of any products, supplies and materials in amounts reasonably necessary to return to Our office for inspection and record-keeping. The inspections may be conducted without notice at any time.

What This Means (2025 FDD)

According to Anago's 2025 Franchise Disclosure Document, franchisees must comply with all federal, state, and local laws, rules, and regulations relevant to operating their Anago Unit Franchise. This includes securing and maintaining all necessary permits, certificates, and licenses, such as those related to business qualifications, trade name registration, occupational licenses, and OSHA requirements. Franchisees are obligated to provide Anago with copies of any inspection reports, warnings, certificates, or ratings issued by governmental entities that indicate material noncompliance with applicable laws, rules, or regulations within two days of receiving them. Anago bears no responsibility for the franchisee's operational activities, janitorial or otherwise.

Anago franchisees are also responsible for paying all due taxes, including unemployment, withholding, income, and property taxes. They must reimburse Anago for any sales, goods and services, or gross receipts taxes imposed on Anago for payments made under the franchise agreement, unless the tax is based on Anago's net income or corporate status. While franchisees can contest tax assessments, they must prevent any tax sale or seizure of assets used in the Anago Unit Franchise.

Furthermore, Anago subfranchisors must comply with Anti-Terrorism Laws, as defined in the FDD, and must not engage with individuals or entities listed on the SDN List. Subfranchisors are solely responsible for determining the actions needed to comply with these laws, and any violation or misrepresentation can lead to immediate termination of the agreement. Additionally, subfranchisors are required to deliver their Franchise Disclosure Document (Subfranchisor - Single Unit) in accordance with all applicable laws.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.