Can Anago Subfranchisors use false or misleading advertising when recruiting new franchisees?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Subfranchisor shall not use any false or misleading advertising, including in the solicitation of prospective Unit Franchisees.
Subfranchisor will comply with all laws regulating the content and use of advertising including registration with, and approval by, applicable state franchise regulators.
Subfranchisor shall obtain Franchisor's prior written consent, which may be granted or withheld in Franchisor's sole and absolute discretion, prior to participating in any franchise trade shows within or outside the Area.
Any such authorized participation will be at Subfranchisor's discretion and Subfranchisor shall be responsible for all expenses associated therewith.
Any approval given to the use of any promotional or advertising (including Internet advertising) material developed by the Franchisor or Subfranchisor may be withdrawn at any time and the Subfranchisor agrees to discontinue its use within 30 days.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Subfranchisors are prohibited from using false or misleading advertising when soliciting prospective Unit Franchisees. Anago requires Subfranchisors to comply with all laws regulating advertising content and use, including registration with and approval by applicable state franchise regulators.
Anago also requires Subfranchisors to obtain the Franchisor's prior written consent before participating in any franchise trade shows, and the Franchisor may withdraw approval of any promotional or advertising material at any time, requiring the Subfranchisor to discontinue its use within 30 days. Furthermore, any Internet advertising, marketing, and/or solicitation methods the Subfranchisor wishes to use must first be approved by Anago in writing, which Anago may grant or withhold at its sole discretion.
These stipulations ensure that Anago maintains control over its brand image and the information disseminated to potential franchisees. This protects both the Franchisor and potential franchisees from deceptive practices. Subfranchisors must adhere to Anago's standards and secure approval for all advertising and promotional activities.