What must an Anago subfranchisor do to be in compliance with their obligations under the agreement before a transfer can occur?
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 not be in default of any term of the agreement, or any other agreement between the subfranchisor and Anago or its affiliates. Additionally, any outstanding debt owed to Anago by the subfranchisor must be satisfied.
This means that before a subfranchisor can transfer their rights or renew their agreement, they need to ensure they are fully compliant with all aspects of their franchise agreement and any related agreements with Anago. This includes making sure all payments are up to date and that they have not violated any terms of the agreement.
For a prospective Anago franchisee, this highlights the importance of maintaining good standing with the franchisor. Failure to do so can prevent the subfranchisor from transferring the business. It is important to carefully review the franchise agreement and related documents to understand all the obligations and ensure compliance to maintain the option for renewal.