Is the Anago Subfranchisor permitted to emulate, edit, or alter the Anago Manuals in any way?
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. Subfranchisor shall replace any such systems when deemed advisable by Franchisor given the age, cost to operate, condition of the system then in use, the then-current and anticipated technology, the information then in use with other Subfranchisors of the System, the needs of the System, and any other factors that may be relevant.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Anago Subfranchisor is explicitly prohibited from emulating, editing, or altering the Anago Manuals in any way. The manuals are loaned to the Subfranchisor and Unit Franchisees but remain the sole property of Anago. This restriction extends to all additions, supplements, improvements, and updates to the manuals. The Subfranchisor is also not allowed to emulate, edit, or alter the manuals for the necessary computer operating system (NBDS) used for telemarketing, administration, and field operations.
Anago requires the Subfranchisor to maintain the confidentiality of the Anago Manuals and other confidential information. Access to the manuals is strictly limited to employees who have a "need to know" to perform their jobs. The Subfranchisor must report any theft, loss, or destruction of the manuals to Anago immediately. If the manuals are lost or destroyed, the Subfranchisor must purchase a replacement set from Anago at a cost of $500.
Furthermore, any improvements, developments, derivative works, enhancements, or modifications to any confidential information made by the Subfranchisor, its employees, contractors, or Unit Franchisees are owned solely by Anago. The Subfranchisor must ensure that its 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 standards.
Anago may revise and change the contents of the Anago Manuals periodically, and the Subfranchisor must comply with each new or changed provision, implementing and enforcing all such modifications with each Unit Franchisee in their area. These revisions are based on what Anago deems is in the best interests of the system, including promoting quality, enhancing goodwill, increasing efficiency, decreasing administrative burdens, or improving profitability. The Subfranchisor must ensure their copy of the Anago Manuals contains all updates received from Anago, with the "Master Copy" maintained by Anago at its home office being the controlling version in case of any dispute.