Does the Anago subfranchise agreement grant the subfranchisor the right to operate or develop a Unit Franchised Business?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
We grant You the right, and You undertake the obligation, to operate 1 Anago Unit Franchise under the System, subject to the terms of this Agreement.
SECTION 1.2 NO PROTECTED TERRITORY.
You are not obtaining any exclusive or protected territory. You may only operate your Unit Franchise anywhere within the counties of (Your counties) in the state of (Your State) (the "Area") under the name Anago. You cannot operate your Unit Franchise outside the Area. We may open and operate Company Units and franchise the Anago Unit Franchise to other Unit Franchisees or engage in any other method of distribution in Our complete discretion whenever, however and wherever We determine, including within the Area. You must designate your own Premises within the Area from which you will manage and administer Your Unit Franchise. If You do not operate Your Anago Unit Franchise out of Your residence but instead occupy a business premises, such business premises and lease agreement will be subject to our prior written approval, which will not be unreasonably withheld.
SECTION 1.3 NATURE OF RELATIONSHIP.
The parties expressly agree that this Agreement is an independent contractor relationship. Nothing in this Agreement shall be deemed to constitute or otherwise create an employment, partnership, joint venture or other formal business entity of any kind and the rights and obligations of the parties shall be as expressly set forth herein. We require only that you complete the work assigned to your Unit Franchise and, while we might make suggestions or recommendations, from time to time, we do not direct or control the manner and means in which you perform the tasks necessary to complete the work or the hours you set aside to perform the work.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the subfranchise agreement grants the subfranchisor the right and obligation to operate one Anago Unit Franchise under the Anago system, subject to the terms of the agreement. Specifically, the subfranchisor may operate their Unit Franchise within the specified counties and state outlined in their agreement, referred to as the "Area." However, the subfranchisor is restricted from operating outside of this designated area.
Anago retains the right to open and operate company units, franchise Anago Unit Franchises to other franchisees, or engage in any other method of distribution within the subfranchisor's Area at their discretion. The subfranchisor is required to designate premises within their Area from which they will manage and administer their Unit Franchise. If the subfranchisor chooses to operate from a business premises rather than their residence, Anago's prior written approval is required for both the premises and the lease agreement, although such approval will not be unreasonably withheld.
The relationship between Anago and the subfranchisor is defined as an independent contractor relationship. The agreement explicitly states that it does not create an employment, partnership, joint venture, or other formal business entity. Anago's primary requirement is that the subfranchisor completes the work assigned to their Unit Franchise. While Anago may offer suggestions or recommendations, they do not direct or control the manner, means, or hours in which the subfranchisor performs the tasks necessary to complete the work.