Is an Anago Subfranchisor entitled to a refund of prepayments to the telephone company when transferring the telephone number?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Subfranchisor acknowledges that there will be substantial confusion in the mind of the public if, after the end or termination of this Agreement, Subfranchisor continues to use the telephone number, websites, social media accounts, and other printed and electronic identifiers associated with the Subfranchise Business or with which the Subfranchise Business has been identified. Therefore, Subfranchisor agrees that promptly after the expiration or termination of this Agreement for any reason, Subfranchisor will cease and desist from using all such identifiers. On Franchisor's request, Subfranchisor will direct all persons responsible for or controlling such identifiers to transfer them to Franchisor or its designee. As regards the telephone number associated with the Subfranchise Business, Subfranchisor will direct the telephone company servicing Subfranchisor to transfer the telephone number to Franchisor, or to any person and at any location as the Franchisor directs. If Subfranchisor does not promptly direct the telephone company, Subfranchisor irrevocably appoints Franchisor as his or her attorney-in-fact to direct the telephone company to make the transfer. There will be no refund of any prepayments by Subfranchisor to the telephone company. Subfranchisor shall execute the Conditional Assignment of Telephone Numbers Agreement in the form attached hereto as Exhibit VI.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a Subfranchisor is not entitled to a refund of any prepayments made to the telephone company when transferring the telephone number associated with the Subfranchise Business. Upon termination or expiration of the Subfranchise Agreement, the Subfranchisor must cease using all identifiers associated with the business, including the telephone number.
Anago requires the Subfranchisor to direct the telephone company to transfer the telephone number to Anago or its designee. If the Subfranchisor fails to do so promptly, Anago is irrevocably appointed as the Subfranchisor's attorney-in-fact to direct the transfer. The document explicitly states that there will be no refund of any prepayments made by the Subfranchisor to the telephone company.
This requirement is further reinforced by the Conditional Assignment of Telephone Numbers Agreement, where the Subfranchisor conditionally assigns all telephone numbers used in connection with the Anago Subfranchise Business to Anago. This agreement becomes effective upon termination or expiration of the Subfranchise Rights Agreement, ensuring that Anago retains control over the telephone numbers and that the Subfranchisor is not entitled to any refunds for prepayments.