Will the Anago Subfranchisor's performance under the agreement cause a breach of other agreements?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
If Subfranchisor commits a default in the performance of any of the covenants, conditions or agreements contained in any other agreement between Subfranchisor and Franchisor or its Affiliates, Subfranchisor shall also have breached this Agreement and Franchisor shall have all of the remedies available to it under this Agreement, including, but not limited to, the right to terminate this Agreement pursuant to Section 8.2, in addition to Franchisor's rights, if any, under such other agreement(s).
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to the 2025 Anago FDD, a Subfranchisor's default in any agreement with Anago or its affiliates constitutes a breach of the Subfranchise Agreement. This is termed a 'cross default,' giving Anago the right to exercise all remedies available under the Subfranchise Agreement, including termination.
This means that if an Anago Subfranchisor fails to meet the obligations in any agreement with Anago, such as failing to pay fees on time or not adhering to operational standards outlined in the Anago Manuals, it is considered a breach of the Subfranchise Agreement itself. This "cross-default" provision significantly broadens the grounds upon which Anago can take action against a Subfranchisor.
For a prospective Anago Subfranchisor, this clause underscores the importance of complying with all agreements with Anago and its affiliates. Failure to do so can trigger serious consequences, including the termination of the Subfranchise Agreement. It is crucial to carefully review all related agreements and understand the obligations they entail to avoid unintentional breaches and potential loss of the franchise.