Is an Anago subfranchisor allowed to alter or edit the Anago Manuals?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
ciated with these programs, including the then prevailing standard rates charged by Franchisor for these programs and all travel, meals and lodging costs for Subfranchisor's attendees.
Section 2.2 - Loan of the Anago Manuals
Franchisor will loan to Subfranchisor one copy of the Anago Manuals Subfranchisor is required to provide to its Unit Franchisees as set forth in the Unit Franchise Agreement and all additions, supplements, improvements and updates to the Anago Manuals within a reasonable amount of time after the same are adopted by Franchisor. The Anago Manuals cannot be emulated, edited, altered in whole or in part by Subfranchisor or its Unit Franchisees. Subfranchisor shall, at its sole cost and expense, provide to each Unit Franchisee one copy of the Anago Manuals and all additions, supplements, improvements and updates to the Anago Manuals. Franchisor will also loan to Subfranchisor one set of manuals (and all additions, supplements, improvements and updates to the manuals within a reasonable time after the same are adopted by Franchisor) of the necessary computer operating system (NBDS) for telemarketing, administration, and field operations. These manuals cannot be emulated, edited or altered in whole or in part by Subfranchisor or its Unit Franchisees.
Section 2.3 - Pre-Opening Assistance and Support
- (a) Original Materials. Franchisor will provide Subfranchisor with assistance in (a) the preparation of advertising brochures, (b) compiling a list of local suppliers, (c) compiling a list of prospective clients, and (d) the set up for local advertising for the Unit Franchisees.
- (b) Computer System/Software. Subfranchisor must provide financial and business records and other information to Franchisor according to reporting formats, methodologies and time schedules that Franchisor establishes. As part of these record-keeping requirements, Franchisor requires Subfranchisor, at its sole cost and expense, to obtain and use the computer hardware and software system (including Franchisor's proprietary software) as designated by Franchisor from time to time in the day-to-day operation of Subfranchisor's business. Currently, Subfranchisor is required to install the computerized NBDS management systems and accept the NBDS (in accordance with the NBDS License Agreement attached as Exhibit D to the FDD) which may be modified at any time by in response to business, operations and marketing conditions. Subfranchisor shall enter into any software licenses, terms of use and software maintenance agreements and pay any license and maintenance fees required by Franchisor or its Affiliates.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, subfranchisors are strictly prohibited from altering or editing the Anago Manuals in any way. The Anago Manuals contain confidential information and are considered the sole property of Anago. Subfranchisors only have the right to possess and use the manuals during the term of their agreement, subject to the restrictions outlined in the agreement. This restriction extends to the subfranchisor's unit franchisees as well; they also cannot alter or edit the manuals. Any changes or revisions to the manuals are at Anago's discretion.
Anago may revise and change the contents of the Anago Manuals periodically, and the subfranchisor must comply with each new or changed provision. These revisions become effective 30 days after written notice from Anago, or longer if specified by Anago. The subfranchisor is responsible for implementing and enforcing these modifications with their unit franchisees. In case of any dispute regarding the contents of the manuals, the "Master Copy" maintained by Anago at its home office will be the controlling version.
All improvements, developments, or modifications to any confidential information within the Anago Manuals, whether created by the subfranchisor, its employees, contractors, or unit franchisees, automatically become the property of Anago. Subfranchisors must ensure that their employees, contractors, and unit franchisees have written agreements assigning all rights to such innovations to the subfranchisor, who then assigns them to Anago. This ensures that Anago maintains complete control over its proprietary information and operational procedures.
Subfranchisors must also treat the Anago Manuals and any other confidential information as confidential, using their best efforts to preserve its confidentiality. The manuals must be kept in a secure area at the subfranchisor's offices, and any theft, loss, or destruction of the manuals must be reported immediately to Anago. A replacement set of manuals can be purchased from Anago for $500. Access to the manuals should be limited to employees with a "need to know" to perform their jobs, and the manuals cannot be copied or made available to unauthorized persons without Anago's written consent.