Under what circumstances will Anago accounts assigned to a franchisee be terminated?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
sary to complete the work or the hours you set aside to perform the work.
ARTICLE 2 - OUR DUTIES
We will provide You with the following assistance and services necessary for the operation of Your Anago Unit Franchise, if You are not in default under this Agreement:
SECTION 2.1 ASSIGNMENT OF ACCOUNTS.
At Our option, You will join in as a party to the Accounts secured by Us through a contract with a Client or those contracts will be assigned to You, in either case until the earlier of (a) the expiration or termination of this Agreement, (b) the contract with the Client is terminated, cancelled, or transferred, or (c) any situation arises whereby You errantly cease service to the Account. All Accounts will initially be between Us and the Client. All payments made by a Client under an Account will be sent directly to Us.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, accounts assigned to a franchisee can be terminated under specific circumstances. Anago has the option to assign accounts secured through contracts with clients to the franchisee. However, this assignment lasts until the earliest of three conditions: the expiration or termination of the franchise agreement, the termination, cancellation, or transfer of the contract with the client, or any situation where the franchisee mistakenly ceases service to the account.
If a client gives notice of pending cancellation or requests a transfer due to poor performance or poor client relations on the franchisee's part, Anago will assign the account to another unit franchisee. This also occurs if Anago receives three or more complaints from a client. Additionally, if Anago elects to procure service to an account the franchisee is currently servicing to comply with the account's requirements, or if the franchisee is unable or unwilling to provide the services, the account may be transferred.
These provisions highlight the importance of maintaining good client relations and providing satisfactory service. Franchisees should ensure they meet the service requirements of their assigned accounts to avoid potential transfers. The franchisee also needs to be aware that Anago retains control over client relationships and account assignments, which can impact the franchisee's revenue and business stability.