Must Anago subfranchisees comply with all requirements related to changes in the System, including offering new products or discontinuing old ones?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to supplement, improve and otherwise change the System at any time and for any reason, and you must comply with all such requirements, including offering and selling new or different products or services specified by us and discontinuing the offer and sale of products and services we no longer approve.
Specifications; Required and Approved Suppliers
To help retain the uniform and high standards necessary to maintain and enhance the goodwill of the System and acceptance in your market, we provide specifications and/or required suppliers for the purchase or lease of certain items, which each Subfranchisor currently is required to retain to provide support services in connection with certain software. We are the only approved supplier for the NBDS System. Specifications may include standards for enhancing the System's image and minimum standards for safety, appearance and other factors. We also currently require that you use our designated internet vendors in connection with the creation and maintenance of your website, and email/webhosting. We will communicate specifications for required or permitted products and services in the Manuals or otherwise in writing.
For any products or services for which we do not then have an approved or designated vendor, you may use any vendor that meets our specifications, as set forth in the Manuals. However, we reserve the right to require you and your Unit Franchisees to purchase or lease computers and all other products or services used or required to be used in your respective businesses only from manufacturers, contractors, distributors, and other suppliers (collectively, "vendors") that we approve or designate and about whom we notify you in the Manuals or otherwise in writing. We may also determine the terms under which vendors provide products or services to your Anago Subfranchise Rights Business and to Anago Unit Franchisees, and the distribution methods for any goods or services provided to or used by vendors of products or services. For any product or service for which we have approved or designated a vendor, you must purchase and require your Unit Franchisees to purchase all such goods and services only from the approved or designated vendor for that product or service, under terms, in the manner, and from the source we designate. In our discretion, there may be only one approved or designated vendor for any particular product or service, and we and our affiliates may be a, or the only, vendor and derive revenue from your and your Units Franchisee's purchases.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago subfranchisees must comply with changes to the Anago system. Anago has the right to change the system at any time and for any reason. Subfranchisees must comply with all requirements, including offering and selling new or different products or services specified by Anago and discontinuing the offer and sale of products and services Anago no longer approves.
To maintain uniform standards, Anago provides specifications and/or required suppliers for certain items that each subfranchisor must retain to provide support services in connection with certain software. Anago is the only approved supplier for the NBDS System. Specifications may include standards for enhancing the System's image and minimum standards for safety, appearance and other factors. Anago also currently requires that subfranchisees use their designated internet vendors in connection with the creation and maintenance of their website, and email/webhosting. Anago will communicate specifications for required or permitted products and services in the Manuals or otherwise in writing.
For products or services without an approved vendor, subfranchisees may use any vendor that meets Anago's specifications in the Manuals. However, Anago reserves the right to require subfranchisees and their Unit Franchisees to purchase or lease computers and all other products or services used in their businesses only from approved or designated vendors. Anago may also determine the terms under which vendors provide products or services to the Anago Subfranchise Rights Business and to Anago Unit Franchisees, and the distribution methods for any goods or services provided to or used by vendors of products or services. For any product or service for which Anago has approved or designated a vendor, subfranchisees must purchase and require their Unit Franchisees to purchase all such goods and services only from the approved or designated vendor for that product or service, under terms, in the manner, and from the source Anago designates. In Anago's discretion, there may be only one approved or designated vendor for any particular product or service, and Anago and its affiliates may be a, or the only, vendor and derive revenue from your and your Units Franchisee's purchases.