What is the Anago Subfranchisor responsible for regarding licensing requirements and applicable laws?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Subfranchisor shall comply with, and assist Franchisor to the fullest extent possible in Franchisor's efforts to comply with, the Anti-Terrorism Laws (as defined below). Subfranchisor shall not hire nor have any dealings with any person listed on the SDN List, as it may be modified from time to time. Subfranchisor is solely responsible for ascertaining what actions must be taken by Subfranchisor to comply with all Anti-Terrorism Laws. Subfranchisor specifically acknowledges and agrees that Subfranchisor's indemnification obligations under this Agreement pertain to Subfranchisor's obligations under this Section. Any misrepresentation by Subfranchisor under this Section, or any violation of any Anti-Terrorism Laws by Subfranchisor, Subfranchisor's owners, principals or employees, shall constitute grounds for immediate termination of this Agreement and any other agreement Subfranchisor has entered into with Franchisor or its Affiliates. As used herein, "Anti-Terrorism Laws" means Executive Order 13224 issued by the President of the United States, the Terrorism Sanctions Regulations (Title 31, Part 595 of the U.S. Code of Federal Regulations), the Foreign Terrorist Organizations Sanctions Regulations (Title 31, Part 597 of the U.S. Code of Federal Regulations), the Cuban Assets Control Regulations (Title 31, Part 515 of the U.S. Code of Federal Regulations), the USA PATRIOT ACT, and all other present and future federal, state and local laws, ordinances, regulations, policies, lists and any other requirements of any Governmental Authority (including, without limitation, The United States Department of Treasury Office of Foreign Assets Control) addressing or in any way relating to terrorist acts and acts of war.
SECTION 4.6 COMPLIANCE WITH LAWS, RULES AND REGULATIONS.
You will comply with all federal, state, and local laws, rules and regulations, and will timely obtain, maintain and renew when required all permits, certificates, or licenses necessary for the proper conduct of the Anago Unit Franchise under this Agreement, including qualification to do business, fictitious, trade or assumed name registration, occupational licenses, and OSHA requirements. You will provide copies of all inspection reports, warnings, certificates and ratings, issued by any governmental entity during the Term on the conduct of the Anago Unit Franchise that indicates Your material noncompliance with any applicable law, rule or regulation, to Us within 2 days of Your receipt of these items. We accept no responsibility for any of Your operations, janitorial or otherwise.
SECTION 4.7 TAX PAYMENTS; CONTESTED ASSESSMENTS.
You will promptly pay when due all taxes required by any federal, state or local tax authority including unemployment taxes, withholding taxes, income taxes, tangible commercial personal property taxes, real estate taxes, intangible taxes and all other indebtedness You incur in the conduct of the Anago Unit Franchise. You will pay to Us an amount equal to any sales tax, goods and services taxes, gross receipts tax, or similar tax imposed on Us for any payments to Us required under this Agreement, unless the tax is measured by or involves the net income or Our corporate status in a state. If We pay any tax for which You are responsible, You will promptly reimburse Us the amount paid. If there is any bona fide dispute as to liability for taxes assessed or other indebtedness, You may contest the validity or the amount of the tax or indebtedness in accordance with procedures of the taxing authority or applicable law. However, You will not permit a tax sale or seizure by levy or signing or similar writ or warrant, or attachment by a creditor, to occur against any assets used in the Anago Unit Franchise.
Section 3. Subfranchisor agrees that this agreement is strictly confidential and that no part or exhibit of this agreement may be discussed nor presented in any form to any person, entity or agency outside of AFI, Inc. unless required by local, state or federal law.
Section 3.9 - Information Security
Subfranchisor must implement all administrative, physical and technical safeguards necessary to protect any information that can be used to identify an individual, including names, addresses, telephone numbers, e-mail addresses, employee identification numbers, signatures, passwords, financial information, credit card information, biometric or health data, governmentissued identification numbers and credit report information ("Personal Information") in accordance with applicable law and industry best practices. It is entirely Subfranchisor's responsibility (even if Franchisor provides Subfranchisor any assistance or guidance in that regard) to confirm that the safeguards Subfranchisor uses to protect Personal Information comply with all applicable laws and industry best practices related to the collection, access, use, storage, disposal and disclosure of Personal Information. If Subfranchisor becomes aware of a suspected or actual breach of security or unauthorized access involving Personal Information, Subfranchisor will notify Franchisor immediately and specify the extent to which Personal Information was compromised or disclosed.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Subfranchisor has several responsibilities regarding compliance with laws, rules, and regulations. The Anago Subfranchisor must comply with all federal, state, and local laws, rules, and regulations relevant to operating an Anago Unit Franchise. This includes securing and maintaining all necessary permits, certificates, and licenses, such as those related to business qualification, trade name registration, occupational licenses, and OSHA requirements.
Furthermore, the Subfranchisor is obligated to provide Anago with copies of any inspection reports, warnings, certificates, or ratings issued by governmental entities that indicate material noncompliance with applicable laws, rules, or regulations within two days of receiving them. Anago assumes no responsibility for the Subfranchisor's operations, whether janitorial or otherwise. The Subfranchisor is also responsible for paying all required federal, state, and local taxes, including unemployment, withholding, income, and property taxes, as well as any sales, goods and services, or gross receipts taxes imposed on Anago for payments made under the Subfranchise Agreement.
Additionally, the Anago Subfranchisor must comply with Anti-Terrorism Laws, avoid dealings with individuals on the SDN List, and understand the actions required to comply with these laws. The Subfranchisor's indemnification obligations under the agreement extend to these responsibilities, and any misrepresentation or violation of Anti-Terrorism Laws can lead to immediate termination of the agreement. The Subfranchisor is also responsible for implementing safeguards to protect personal information in accordance with applicable laws and industry best practices, and must notify Anago immediately of any security breaches involving personal information.