What is the Subfranchisor required to pay in addition to the Software Support Fee to Anago?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
e responsible for any cost of recovery of the data by the Subfranchisor nor shall the Franchisor be liable for any lost income or damages of the Subfranchisor as of the result of data loss. Title and full ownership rights to the Software at all times remains with the Franchisor, including with respect to any enhancements or modifications Franchisor makes to the Software at Subfranchisor's request. The Subfranchisor may not enhance or modify the Software in any manner. The rights granted under this Agreement authorize the Subfranchisor to utilize the Related Materials in printed form, in support of its use of the Software in machine-readable form.
(e) Fees and Charges. The Subfranchisor will pay a current fee of $200 per month (the "Software Support Fee"), together with any additional sums (Internet, or other access fees) due for additional technical support not relating to the operation of the Software. The Software Support Fee includes technical support directly relating to the Software, updates and fixes approved by the Franchisor, and installation of approved updates, general computer bulletins. All network and hardware support are billable at our programmer's current rate per hour if the Subfranchisor uses their services. The software Support fee is subject to change with a 30-day notice.
(f) Taxes. The Subfranchisor will declare and pay when due all assessments, charges and taxes, including sales, use, excise and property taxes, and penalties and interest with respect to this Agreement, imposed in connection with this Agreement, if any; excluding, however, any taxes based on or measured solely by the Franchisor's net income.
(g) Technical Services, Updates and Enhancements. During the Term, the Franchisor may, from time to time, as it deems necessary make enhancements, improvements, or other changes to the name, user interface, functionality, compatibility, capabilities, performance, efficiency, or quality of the Software and Related Material (collectively, "Updates and Enhancements"). All Updates and Enhancements provided by Franchisor to Subfranchisor will be deemed Software or Related Material, as applicable. Subfranchisor will install all Updates and Enhancements as soon as practicable after receipt. Franchisor may from time to time require Subfranchisior to pay a reasonable fee for certain Updates and Enhancements, and Subfranchisior shall be responsible for the costs of postage, insurance and handling.
(h) Consent to Use of Data. Subfranchisor agrees that Franchisor and its affiliates may collect and use technical and other information, including but not limited to technical information about Subfranchisor's computer, system and application software and peripherals, that is gathered periodically to facilitate the provision of Software updates, product support and other services to Subfranchisor (if any) related to the Software and to retrieve and collect information and data which Subfranchisor is required to provide to Franchisor under the Subfranchise Agreement. Franchisor is not restricted in its use of this information.
(i) Warranties. The Franchisor does not warrant that the Software or the Related Materials (i) will be free of defects or that any defect in the Software or the Related Materials will be corrected; (ii) will meet any or all of Subfranchisor's requirements; (iii) will be compatible with hardware or third-party software not approved by Franchisor; or (iv) will be available for uninterrupted use by Subfranchisor. EXCEPT AS PROVIDED IN THIS SECTION, THE FRANCHISOR MAKES NO EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, INCLUDING THOSE OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THE SOFTWARE AND SERVICES FURNISHED UNDER THIS AGREEMENT, AND EXPRESSLY DISCLAIMS THE SAME.
(j) Termination. The license granted under this Agreement for any Software terminates at the expiration or termination of this Agreement, or as otherwise provided in this Agreement. Upon expiration or termination of this Agreement, the Subfranchisor will immediately deliver to the Franchisor all Software and Related Materials. This requirement will apply to all copies in any form including translations, compilations or partial copies.
(k) Hardware Requirements. It is the obligation of the Subfranchisor to obtain the computer hardware, workstations, and mobile devices required for the operation of the Software as periodically specified in the Anago Manuals (as defined in the Subfranchise Agreement), the Subfranchise Agreement or otherwise in writing. Configuration, setup, and all network wiring are the responsibilities of the Subfranchisor.
(l) Confidentiality. Without limiting any other confidentiality requirements of the Subfranchisor under the Subfranchise Rights Agreement or any other agreement with us, the Subfranchisor agrees not to provide or otherwise make available any portion of the Software, including documentation and machine-readable code, or the Related Materials in any form to any person other than the Subfranchisor's employees with a need to know such information and who are themselves bound to written confidentiality obligations similar to those contained herein. The Subfranchisor will not reverse assemble or reverse compile the Software in whole or in part.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, in addition to the Software Support Fee, a Subfranchisor may be required to pay for network and hardware support, taxes, fees for updates and enhancements to the software, fund contributions, website maintenance fees, and a technology fee. Specifically, if the Subfranchisor uses Anago's programmer's services for network and hardware support, they will be billed at the programmer's current hourly rate. The Subfranchisor is also responsible for all assessments, charges, and taxes related to the Subfranchise Agreement, excluding taxes based on Anago's net income. Anago may also require a reasonable fee for certain software Updates and Enhancements, with the Subfranchisor covering postage, insurance, and handling costs.
If a fund is established, the Subfranchisor must contribute monthly an amount not exceeding 2.2% of their monthly Gross Revenues. Should Anago assume responsibility for maintaining the Subfranchisor's webpage, a monthly Website Maintenance Fee (currently $1,500) is required, which may be modified periodically. Anago also reserves the right to initiate a monthly Technology Fee of up to 1.5% of the Subfranchisor's monthly Gross Revenues.
Furthermore, Anago requires Subfranchisors, at their own expense, to obtain and use designated computer hardware and software systems, including Anago's proprietary software. The Subfranchisor must also enter into any required software licenses, terms of use, and software maintenance agreements, paying any associated license and maintenance fees. Failure to use the computer system and Anago proprietary software as directed by Anago constitutes a material breach of the agreement, potentially leading to termination.