Can Anago terminate my franchise if I refuse to comply with cleanliness or sanitation standards for my Anago Unit Franchise?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
of Your real or personal property used in the Anago Unit Franchise is sold after levy by any sheriff, marshal or constable.
- (b) You will notify Us within 3 days of the occurrence of any of the events described in Subsection 11.2(a).
- (c) If at any time the Subfranchise Rights Agreement is terminated, this Agreement will also terminate; provided, however, that AFI may in its sole discretion, and upon notice to you, assume Our rights and obligations under this Agreement.
SECTION 11.3 TERMINATION BY US - AFTER NOTICE.
If You are in default We may, at Our option, terminate all rights granted to You under this Agreement, without affording You an opportunity to cure the default, effective immediately upon notice to You, upon the occurrence of any of the following Events of Default:
- (a) If You cease to perform contracted service to the Accounts for more than 3 consecutive days without Our consent;
- (b) If You fail or refuse to comply with any mandatory specification, standard or operating procedure We require in this Agreement, in the Manual or otherwise in writing, on the cleanliness or sanitation of the Anago Unit Franchise;
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago can terminate your franchise agreement without providing an opportunity to cure the default if you fail or refuse to comply with any mandatory specification, standard, or operating procedure regarding the cleanliness or sanitation of your Anago Unit Franchise. These standards are outlined in the Franchise Agreement, the Manual, or otherwise provided to you in writing. This means that maintaining the cleanliness and sanitation standards is a critical aspect of operating an Anago franchise, and failure to adhere to these standards can have immediate and severe consequences.
Anago also has the right to terminate your franchise agreement if you violate any health, safety, or sanitation law, ordinance, or regulation and do not correct the failure or refuse to do so within 3 days after written notice from Anago or a governmental authority. If a cure cannot be reasonably completed in this time, then all reasonable steps to cure must begin within this time, but a cure must be completed within 30 days after receipt of written notice. This highlights the importance of staying compliant with all applicable health and safety regulations and promptly addressing any violations to avoid termination.
It is important to note that Anago can also terminate the agreement if you receive three or more Notices of Default for the same or similar defaults during any 12 consecutive months, even if all defaults were cured. This underscores the need for consistent compliance with all Anago's standards and procedures, as repeated minor infractions can accumulate and lead to termination. As a prospective franchisee, you should carefully review the Anago Unit Franchise Operating Manual and any other written guidelines provided by Anago to fully understand the cleanliness and sanitation standards required and ensure ongoing compliance.