Can the Anago Subfranchise Agreement assignment be changed without written consent?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (m) Assignment. Without the prior written consent of the Franchisor, the Subfranchisor will not: (a) assign, transfer, or grant a security interest in this Agreement, the Software, the Related Materials or any part of the Software or Related Materials or any interest in the Software or Related Materials; (b) sublicense or lend the Software or any part of the Software, or any interest in the Software; (c) permit the Software or any part of the Software to be used by anyone other than the Subfranchisor or the Subfranchisor's employees; or (d) change the location of the Software.
The Franchisor may assign or otherwise transfer all or a portion of their respective interests in the Software or this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Subfranchisor is restricted from assigning, transferring, or granting a security interest in the Subfranchise Agreement without obtaining prior written consent from Anago. This restriction extends to the Software, Related Materials, or any part or interest in them. Additionally, the Subfranchisor cannot sublicense or lend the Software or allow anyone other than their employees to use it without Anago's written permission. This requirement ensures that Anago maintains control over who operates under their brand and uses their proprietary materials.
This provision is designed to protect Anago's interests by ensuring that any transfer or assignment of the agreement is to a party approved by them. This allows Anago to maintain standards and protect its brand reputation. The franchisor, however, retains the right to assign or transfer all or a portion of their interests in the Software or the Subfranchise Agreement.
For a prospective Anago subfranchisee, this means that they cannot sell, transfer, or otherwise assign their rights under the Subfranchise Agreement without first getting Anago's approval. This is a common provision in franchise agreements, as it allows the franchisor to control who becomes a franchisee and ensures that new franchisees meet their standards. It is important for potential subfranchisees to understand this restriction and factor it into their business planning, especially if they foresee a potential need to transfer the business in the future.