Is the Anago Subfranchisor required to use a specific computer hardware and software system?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
bfranchisor 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. If the Subfranchisor voluntarily fails to use the computer system and Anago proprietary software as directed by the Franchisor it will be a material breach under this agreement that the Franchisor at its option may terminate this agreement.
Section 2.4 - Billing and Collection System
(a) Invoicing. Under the Unit Franchise Agreements, each Unit Franchisee appoints Subfranchisor as its agent for purposes, throughout the term of the Unit Franchise Agreement, of billing and collecting for services the Unit Franchisee provides to its Clients. Subfranchisor hereby delegates to Franchisor the performance of those services, utilizing the NBDS System or such other program as designated by Franchisor as described in this Section 2.4. Franchisor will send monthly
invoices to every Client account serviced by Subfranchisor's Unit Franchisees for up to twelve (12) months following commencement of the Subfranchisor's operations and, at Franchisor's option, indefinitely in Franchisor's sole discretion or upon a default under this Agreement which remains uncured beyond all applicable notice and cure periods (an "Event of Default").
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Subfranchisors are required to use specific computer hardware and software systems designated by Anago. Specifically, Anago requires the Subfranchisor to obtain and use the designated computer hardware and software system, including Anago's proprietary software, at their own cost. Currently, Subfranchisors must install the computerized NBDS management systems and accept the NBDS.
The NBDS system may be modified by Anago in response to business, operations, and marketing conditions. The Subfranchisor must enter into any software licenses, terms of use, and software maintenance agreements and pay any associated fees required by Anago or its affiliates. Furthermore, the Subfranchisor is obligated to replace these systems when Anago deems it advisable, considering factors such as age, operating costs, system condition, current and anticipated technology, information used by other Subfranchisors, the needs of the system, and other relevant factors.
Failure to use the mandated computer system and Anago's proprietary software as directed constitutes a material breach of the agreement, potentially leading to termination of the agreement at Anago's discretion. The Subfranchisor is also responsible for obtaining the necessary computer hardware, workstations, and mobile devices to operate the software, as specified in the Anago Manuals or the Subfranchise Agreement. Configuration, setup, and network wiring are also the Subfranchisor's responsibility.
Anago also requires access to the Subfranchisor's records, including those on any electronic or computer system, 24 hours a day, 365 days a year. This access includes electronic reporting through a modem or Internet connection installed within the Subfranchisor's computer, with hard copies of data provided upon request. Any supplementary hardware or software costs associated with this access are to be borne by the Subfranchisor.