What is the Anago Subfranchisor representing regarding the copies of documents furnished to the Franchisor?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
If any action or proceeding is brought against Subfranchisor regarding its business, Subfranchisor will immediately provide Franchisor with copies of all pleadings, papers and material correspondence regarding the action or proceeding. Subfranchisor will keep Franchisor informed about the progress and outcome of the action or proceeding. If Franchisor deems, in its sole discretion, that any action, suit or proceeding commenced against Subfranchisor or any of its employees may have an impact on the Anago franchise System, Franchisor shall have the right to participate in any such action, suit or proceeding and Subfranchisor agrees to cooperate fully with Franchisor's participation.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if any legal action is initiated against the Subfranchisor concerning their business, they are obligated to promptly provide Anago with copies of all relevant pleadings, papers, and significant correspondence pertaining to the action. The Subfranchisor must also keep Anago informed about the progress and outcome of the legal proceedings.
Anago retains the right to participate in any legal action, suit, or proceeding commenced against the Subfranchisor or their employees if Anago believes it could impact the Anago franchise system. The Subfranchisor is required to fully cooperate with Anago's participation in such cases.
This requirement ensures that Anago is aware of any potential legal issues that could affect the brand or the franchise system as a whole, allowing them to take appropriate action to protect their interests. The Subfranchisor's cooperation is essential for Anago to effectively manage and mitigate any risks associated with legal challenges faced by its Subfranchisees.