During the term of the Anago franchise, is a franchisee allowed to influence Anago's business affiliates to modify their relationship with Anago?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
| p.Death or disability of franchisee | Section 7.4 | A personal representative of the deceased Subfranchisor, or deceased principal owner of the Subfranchisor, shall: 1. Provide a replacement manager satisfactory to us; and 2. Upon your death, your Anago Subfranchise must be transferred within 6 months of your death in accordance with the transfer provisions of your Subfranchise Rights Agreement to a third party approved by us. |
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| q.Non-competition covenants during the term of the franchise | Subsection 10.2(a) | You may not: 1. Directly or indirectly, influence any of our business affiliates to modify their relationship with us; 2. Have any involvement with any Competitive Business; or 3. Interfere with our business or any of our other franchisees. |
| r. Non-competition covenants after the franchise is terminated or expires | Subsection 10.2(b) | You may not, for 24 months after the expiration or termination of your Subfranchise Rights Agreement or, if you fail or refuse to comply with these restrictions, for 24 months following the date on which you begin to comply (whether or not pursuant to an order issued by a court or arbitrator): 1. Directly or indirectly, influence any of our business affiliates to modify their relationship with us; |
| 2. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–52)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, during the term of the franchise agreement, a franchisee is prohibited from directly or indirectly influencing any of Anago's business affiliates to modify their relationship with the company. This restriction is part of the non-competition covenants that Anago franchisees must adhere to.
This provision means that franchisees cannot attempt to persuade Anago's suppliers, partners, or other related businesses to change the terms of their agreements with Anago or to discontinue their relationships altogether. Such actions are considered a breach of the franchise agreement and could lead to termination or other penalties.
This restriction remains in place for 24 months after the expiration or termination of the Subfranchise Rights Agreement. This extended period ensures that former franchisees cannot leverage their past association with Anago to disrupt its business relationships even after they are no longer part of the franchise system. Franchisees should be aware of these limitations and ensure they do not engage in any activities that could be construed as influencing Anago's business affiliates.