Is an Anago subfranchisee required to enter into licenses, terms of use, and maintenance agreements for the NBDS system?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Also, you must utilize our computerized NBDS management systems and accept NBDS (in accordance with the NBDS License Agreement attached as Exhibit D to this Disclosure Document), which may be modified at any time in response to business, operations and marketing conditions. You must enter into any licenses, terms of use and maintenance agreements and pay any license and maintenance fees as we may require. You must replace any such systems when we deem advisable given the age, cost to operate, condition of the system then in use, the thencurrent and anticipated technology, the information then in use with other Subfranchisors of the System, the needs of the System, and any other factors that may be relevant.
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, subfranchisees are required to enter into licenses, terms of use, and maintenance agreements for the NBDS (National Business Development System). Anago requires subfranchisees to use designated computer hardware and software, including proprietary software, for their business operations. The NBDS system may be modified at any time based on business, operational, and marketing conditions.
As part of the requirements, subfranchisees must agree to licenses, terms of use, and maintenance agreements and pay any associated license and maintenance fees as required by Anago. Subfranchisees are also obligated to replace these systems when Anago deems it necessary, considering factors such as age, operating costs, system condition, current and anticipated technology, information used by other subfranchisees, system needs, and other relevant factors.
This requirement ensures that all Anago subfranchises operate using a standardized and up-to-date system, which allows for consistent data collection and management. It also enables Anago to maintain control over the technology used within the franchise network and to implement changes as needed. However, it also means that subfranchisees must be prepared to incur ongoing costs for licenses, maintenance, and potential system replacements, as mandated by Anago.