Why does Anago temporarily hold certain master franchisees?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
| The Company holds certain master franchisees | through temporary | ownership due | to the abandonment or returned |
|---|---|---|---|
| master territories. The operations of these master | franchisees | are maintained with | the full intent of finding an |
| unrelated party for resale. During the year ended | December | 31, 2024, 2023, | and 2022 the Company held |
The Company holds certain master franchisees through temporary ownership due to the abandonment or returned master territories. The operations of these master franchisees are maintained with the full intent of finding an unrelated party for resale. During the year ended December 31, 2024, 2023, and 2022 the Company held ownership in EHLB, Inc., PBTR, Inc. and CCTD, Inc. In November 2024, the Company sold the territory held by EHLB, Inc.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago may temporarily hold ownership of certain master franchisees due to the abandonment or return of master territories. When this occurs, Anago maintains the operations of these master franchises with the intention of reselling them to an unrelated third party.
During the period ending December 31, 2024, 2023, and 2022, Anago held ownership in EHLB, Inc., PBTR, Inc., and CCTD, Inc. In November 2024, Anago sold the territory held by EHLB, Inc. This indicates that Anago actively manages and seeks to transfer these territories to new owners when the original master franchisees are no longer able or willing to operate them.
For a prospective franchisee, this means that Anago is prepared to step in and maintain operations if a master franchisee fails. This could provide some reassurance that the brand will continue to be supported in a given territory even if the original master franchisee exits the system. However, it also highlights the risk of master franchisees failing, which could impact the stability and support available to unit franchisees within those territories. It would be prudent for a potential franchisee to inquire about the reasons for past master franchisee abandonments and the process Anago uses to select and support new master franchisees to ensure long-term stability.