What is the standard term length for an Anago Unit Franchise Agreement, assuming it is not terminated early?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE 16 - TERM
SECTION 16.1 TERM.
The Term of this Agreement is 5 years from the Agreement Date, unless sooner terminated under ARTICLE 11. The conditions under which You have the opportunity of obtaining a Successor Anago Unit Franchise Agreement at the expiration of this Agreement are stated in Section 16.2.
SECTION 16.2 OPTION TO OBTAIN SUCCESSOR ANAGO UNIT FRANCHISE AGREEMENT.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the standard term length for an Anago Unit Franchise Agreement is 5 years, starting from the agreement date. However, this is subject to early termination as outlined in Article 11 of the agreement.
At the end of the initial 5-year term, franchisees have the option to obtain a Successor Anago Unit Franchise Agreement. This option allows for additional terms of 5 years each, offering the potential for long-term operation if the franchisee meets specific conditions. These conditions include providing written notice of intent to renew, remaining in compliance with all agreements, signing the successor agreement, meeting all requirements under the new agreement (excluding new initial or renewal fees), and signing a general release of claims against Anago.
If a franchisee does not meet the requirements for a successor agreement, Anago may choose not to renew the franchise agreement. In this case, the franchisee has the option to sell their unit franchise, with Anago retaining the right of first refusal and approval of any potential transferee. To facilitate the sale, Anago may extend the term of the agreement to provide at least 180 days for the franchisee to find a buyer, unless there are grounds for earlier termination.