Must an Anago Subfranchisor be in compliance with all obligations, including payments, to transfer their subfranchise?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) Subfranchisor is not in default of any term of this Agreement, or any other agreement between Subfranchisor and Franchisor or its Affiliates and any outstanding debt owed to Franchisor by Subfranchisor has been satisfied;
- (a) Should the Subfranchisor be in a state of default prior to expiration of the term of this agreement or enter into a state of default during the last 9 months remaining, the default must be cured prior to the renewal or obtaining a Successor Anago Subfranchise Rights Agreement; and
- (b) Should the default not be cured or be determined to be incurable within 60 days of the expiration of the agreement all remedies to cure if any shall be at the sole discretion of the Franchisor before a Successor Anago Subfranchise Rights Agreement may be obtained;
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a Subfranchisor must be in compliance with all agreements to be eligible for a Successor Anago Subfranchise Rights Agreement. Specifically, the Subfranchisor cannot be in default of any term of the existing agreement or any other agreement with Anago or its affiliates. Any outstanding debt owed to Anago by the Subfranchisor must be satisfied.
If the Subfranchisor is in a state of default prior to the expiration of the agreement or enters into a state of default during the last nine months of the agreement, the default must be cured before a Successor Anago Subfranchise Rights Agreement can be obtained. If the default is not cured or is determined to be incurable within 60 days of the expiration of the agreement, any remedies to cure the default are at the sole discretion of Anago before a Successor Anago Subfranchise Rights Agreement may be obtained.
In addition to curing any defaults and satisfying outstanding debts, the Subfranchisor must also meet other conditions to obtain a Successor Anago Subfranchise Rights Agreement. These conditions include submitting an application within a specified timeframe, signing Anago's current form of the Subfranchise Rights Agreement, complying with qualification and training requirements, agreeing to a minimum monthly royalty, and executing a general release of all claims against Anago.