After the termination or expiration of the Anago subfranchise agreement, what evidence must the subfranchisor furnish to Anago, and within what timeframe?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 9.4 - Cessation of Operation
- (a) Subfranchisor will immediately cease operation of the Subfranchise Business and shall not directly or indirectly, at any time or in any manner identify itself or any business as a current or former Anago Subfranchise, franchisee, licensee or dealer of, or otherwise associated with, Franchisor or the System. Without limiting the generality of the foregoing, Subfranchisor shall immediately: (i) cease selling Unit Franchises for the Franchisor; (ii) cease using all advertising materials, forms and other materials bearing the Proprietary Marks; (iii) cease holding itself out as a Subfranchisor of Franchisor; (iv) take all steps necessary to disassociate itself from Franchisor and the System; (v) cease solicitations of Clients; (vi) cease all communication with all Clients; (vii) cease providing services to Unit Franchisees; and (viii) promptly and at its own expense make the alterations Franchisor may specify in the Anago Manuals (or otherwise) to distinguish the Premises clearly from its former appearance in order to prevent public confusion. Franchisor is free to sell new Unit Franchises, enter into new Subfranchise rights agreements or other arrangements in the Area without any obligation to the Subfranchisor. Subfranchisor shall immediately assign all Client Accounts to Franchisor in accordance with Section 9.5 below.
- (b) Subfranchisor shall furnish to Franchisor within thirty (30) days after the effective date of the termination or expiration of this Agreement, evidence satisfactory to Franchisor of Subfranchisor's compliance with the foregoing obligations.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, after the termination or expiration of the Subfranchise Agreement, the subfranchisor must provide evidence of compliance with certain obligations to Anago within thirty (30) days of the termination or expiration date. This evidence must be satisfactory to Anago.
Specifically, the subfranchisor must demonstrate that they have ceased operating the Subfranchise Business and are no longer identifying themselves as a current or former Anago subfranchise, franchisee, licensee, or dealer. This includes stopping the sale of Unit Franchises, discontinuing the use of advertising materials and forms bearing Anago's Proprietary Marks, ceasing to present themselves as an Anago subfranchisor, and taking steps to disassociate from Anago and its System. The subfranchisor must also cease solicitations of Clients, all communication with all Clients, and providing services to Unit Franchisees.
Additionally, the subfranchisor is required to make alterations specified by Anago in the Anago Manuals to distinguish the premises from its former appearance, preventing public confusion. The subfranchisor must also assign all Client Accounts to Anago. Providing evidence of compliance with all of these cessation of operation obligations is crucial for a departing subfranchisor to fulfill their post-termination responsibilities to Anago.