factual

Are there any exhibits in the Anago FDD that detail termination rights?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]

| i. Franchisee's obligations on termination / non renewal | ARTICLE 9, Subsection 10.2(b) and Section 11.2 | You must: 1. Comply with the restrictions on competition (see row "r" below); 2. Indemnify us from any losses or damages we sustain as a result of your operation of the Anago Subfranchise Rights Business; 3. Discontinue all use of, and maintain confidentiality of, all our Confidential Information; 4. Cease operating your Anago Subfranchise business; 5. Pay all amounts you owe to us within 10 days; 6. Discontinue use of Proprietary Marks and de-identify your Subfranchise Rights Business; 7. Cease use of the Subfranchise Rights

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

The current Manuals consist of a total of 1,113 pages. The Table of Contents for the Manuals is attached to this Disclosure Document as Exhibit G.

If you lease the Premises from a third party, you and the landlord for the leased premises must sign and deliver to us a collateral assignment of your rights under the lease for the premises in the form attached to your Anago Subfranchise Rights Agreement as Exhibit X.

[Item 20: OUTLETS AND FRANCHISEES INFORMATION]

Attached as Exhibit E are the names, addresses, and telephone numbers of all current Subfranchisors. Also in Exhibit E are the names, city and state, and current business telephone numbers (or, if unknown, the last known home telephone number) of every Anago Subfranchise Rights Business who had their Subfranchise Rights Business terminated, canceled, not renewed, or otherwise voluntarily or involuntarily ceased to do business under a Subfranchise Rights Agreement during the most recently completed fiscal year or who have not communicated with us within 10 weeks of the Disclosure Document issuance date.

SECTION 11.1 TERMINATION BY YOU.

You do not have the right to terminate the Agreement prior to its expiration without written consent from Us.

SECTION 11.2 TERMINATION BY US - WITHOUT NOTICE.

  • (a) Subject to applicable law, this Agreement automatically terminates without notice or opportunity to cure on the date of the occurrence of any of the following Events of Default:
    • (i) if You damage the Anago System through violation of federal, state or local environmental laws;
    • (ii) if You become insolvent or make a general assignment for the benefit of creditors;
    • (iii) You file a petition in bankruptcy or a petition is filed against or consented to by You and the petition is not dismissed within 45 days;
      • (iv) You are adjudicated as bankrupt;
    • (v) a bill in equity or other proceeding for the appointment of a receiver or other custodian for Your business or assets is filed or consented to by You;
    • (vi) a receiver or other custodian (permanent or temporary) of Your business or assets is appointed by any court of competent jurisdiction;
    • (vii) proceedings for a composition with creditors under federal or any state law is begun by or against You;
    • (viii) a final judgment in excess of $5,000 remains unsatisfied or of record for 30 days or longer (unless a supersedes bond is filed);
    • (ix) execution is levied against Your operation or property, or suit to foreclose any lien or mortgage against the Premises or Your assets is begun against You and not dismissed within 45 days; or
    • (x) a substantial portion 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).

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:

  • (j) If You receive from Us 3 or more Notices of Default for the same or similar defaults during any 12 consecutive months, even if all defaults were cured;
  • (e) If You engage in conduct that is harmful to or reflects unfavorably on You or the System in that the conduct exhibits a reckless disregard for the physical or mental well-being of employees, Clients, Our representatives or the public at large, including battery, assault, sexual harassment or discrimination, racial harassment or discrimination, alcohol or drug abuse or other forms of threatening, outrageous or unacceptable behavior as determined in Our sole discretion;
  • (h) If You knowingly maintain false Records, or knowingly submit any false Records to Us;

Source: Item 22 — CONTRACTS (FDD page 62)

What This Means (2025 FDD)

According to Anago's 2025 Franchise Disclosure Document, Exhibit G contains the table of contents for the Anago Manuals. The collateral assignment of lease agreement is included as Exhibit X. Exhibit E lists the names, addresses, and telephone numbers of all current Subfranchisors, as well as information for Anago Subfranchise Rights businesses that have been terminated, canceled, or not renewed.

Article 11 within the franchise agreement outlines the conditions of termination. Anago can terminate the agreement without notice if the franchisee damages the Anago system through environmental law violations, becomes insolvent, files for bankruptcy, is adjudicated bankrupt, has a receiver appointed, begins proceedings for composition with creditors, has a final judgment exceeding $5,000 unsatisfied for 30 days, faces execution levied against their operation, or sells a substantial portion of property after levy. The franchisee must notify Anago within 3 days of these events.

Anago can terminate the agreement with notice if the franchisee ceases contracted service for more than 3 days without consent, fails to comply with mandatory specifications, is convicted of a felony, denies inspection rights, engages in harmful conduct, attempts unauthorized transfer of rights, breaches confidentiality or noncompetition covenants, maintains false records, misuses proprietary property, or receives three or more notices of default within 12 months. The franchisee cannot terminate the agreement without Anago's written consent. Upon termination, the franchisee must comply with restrictions on competition, indemnify Anago, maintain confidentiality, cease operating the Anago business, pay all amounts owed within 10 days, discontinue use of proprietary marks, and de-identify their business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.