Must an Anago subfranchisee assign their lease to Anago upon termination or expiration of the Subfranchise Rights Agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
If you lease the Premises from a third party, you and the landlord for the leased premises must sign and deliver to us a collateral assignment of your rights under the lease for the premises in the form attached to your Anago Subfranchise Rights Agreement as Exhibit X. Under the collateral assignment agreement, you must, at our option, assign all of your rights under the lease to us upon termination or expiration of your Anago Subfranchise Rights Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if a subfranchisee leases their office space from a third party, Anago requires a collateral assignment of the lease. This means that the subfranchisee and their landlord must sign an agreement that allows Anago to take over the lease under certain conditions.
Specifically, Anago has the option to require the subfranchisee to assign all rights under the lease to Anago upon the termination or expiration of the Anago Subfranchise Rights Agreement. This provision is included in the Anago Subfranchise Rights Agreement as Exhibit X.
In practical terms, this means that if the subfranchisee's agreement with Anago ends, Anago can choose to step into the subfranchisee's shoes as the tenant. This could be to ensure continued operation in that location or to facilitate a smooth transition to a new subfranchisee. The franchisee should carefully review Exhibit X of the Anago Subfranchise Rights Agreement to fully understand the terms and conditions of this collateral assignment.