Under what circumstances can Anago Franchisor withhold consent or approval from a Subfranchisor, according to the franchise agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
ng to Subfranchisor be included on Franchisor's website; provided that Franchisor shall have the right to control the content of any such information and to remove any such information at any time during the Term of this Agreement. Any Internet advertising, marketing and/or solicitation methods Subfranchisor wishes to use must first be approved by Franchisor in writing. Franchisor may grant or withhold its approval in its sole discretion.
- (e) Subfranchisor agrees to list and advertise the Business on all major internet search engines (for example, Google Local and CitySearch) and all major internet consumer review websites (for example, Yelp) set forth in the Anago Manuals from time to time and, at Franchisor's direction, in at least one recommended classified telephone directory distributed within the market areas in which the Business operates (in the business classifications Franchisor prescribes from time to time) and to use the form of classified telephone directory advertisement approved by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago can withhold approval in several instances related to a subfranchisor's operations. Specifically, Anago may withhold approval for any internet advertising, marketing, and/or solicitation methods the subfranchisor wishes to use, and this decision is at Anago's sole discretion. This means the subfranchisor needs written approval from Anago before implementing any online promotional strategies.
Furthermore, Anago can withhold approval if a subfranchisor wishes to establish a separate website related to their operations. Again, this approval is at Anago's sole discretion. This gives Anago tight control over the subfranchisor's online presence and branding. Additionally, Anago can withdraw approval of any promotional or advertising material, developed by either Anago or the subfranchisor, at any time, requiring the subfranchisor to discontinue its use within 30 days.
Finally, Anago maintains the right to deny a Successor Anago Subfranchise Rights Agreement if the subfranchisor fails to meet certain conditions, although the specific conditions are not detailed in this excerpt. This provision underscores Anago's authority over the continuation of the subfranchise agreement. A prospective subfranchisor should seek clarification from Anago regarding the specific conditions that could lead to the denial of a successor agreement to fully understand their obligations and potential risks.