What is the 'Term' mentioned in the Anago NBDS License Agreement dependent on?

According to Anago's 2025 Franchise Disclosure Document, the term of the license granted within the NBDS License Agreement for any software and related materials is contingent upon the Anago Subfranchise Rights Agreement remaining in full force and effect. This means that the license to use the software and materials provided by Anago to its subfranchisees is directly tied to the validity and active status of the overarching Subfranchise Rights Agreement. If the Subfranchise Rights Agreement is terminated for any reason, the software license will also terminate.

This dependency has significant implications for Anago subfranchisees. It highlights the importance of maintaining compliance with the terms and conditions of the Subfranchise Rights Agreement. Any breach or termination of this primary agreement would result in the loss of access to essential software and related materials necessary for operating the subfranchise business. This could severely disrupt business operations and impact the subfranchisee's ability to fulfill their obligations.

This type of arrangement is not uncommon in franchising, where various agreements are interconnected to ensure a cohesive and compliant network. By linking the software license to the Subfranchise Rights Agreement, Anago maintains control over its proprietary tools and resources, ensuring they are only used by authorized and compliant subfranchisees. Prospective subfranchisees should carefully review the conditions under which the Subfranchise Rights Agreement can be terminated to fully understand the potential risks to their software license and overall business operations.

In summary, the duration of the software license granted to Anago subfranchisees is not fixed but is instead directly linked to the ongoing validity of the Subfranchise Rights Agreement. This creates a dependency that subfranchisees must be aware of and manage to ensure continued access to essential operational tools.