Under what circumstances is Anago Franchising International (AFI) NOT liable for the performance of services related to Client Accounts?

According to Anago's 2025 Franchise Disclosure Document, Anago Franchising International (AFI) has specific conditions under which it is not liable for the performance of services related to client accounts. AFI is not liable for the performance of any services, duties, or obligations under the Client Accounts as long as AFI has not exercised its option to take an assignment of any or all Client Accounts. During this period, the Subfranchisor remains liable for all such services, duties, and obligations.

This means that while the Subfranchise Agreement is active and the subfranchisor is not in default, the subfranchisor retains responsibility for fulfilling the service obligations to clients. AFI's non-liability is contingent on them not having taken over the Client Accounts. This arrangement protects AFI from direct liability for service failures or other issues arising from the subfranchisor's operations, provided they haven't assumed control of the accounts.

For a prospective Anago subfranchisee, this clarifies the division of responsibilities. The subfranchisee is primarily responsible for service delivery and client satisfaction. However, it's crucial to understand the conditions under which AFI might exercise its option to take over Client Accounts, as this would shift the liability. The subfranchisee should seek clarity on what constitutes a default under the Subfranchise Agreement and what triggers AFI's right to assume the Client Accounts. This understanding is vital for managing risk and ensuring compliance with the franchise agreement.