Under what circumstances does Anago perform a subfranchisee's obligations?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1 | Amount | Due Date2 | Remarks |
|---|---|---|---|
| attend retraining classes in the areas the training officer feels are necessary for you to successfully complete the Anago Training Program for Subfranchisors. | |||
| Administrative Support Fee | 2% of the Gross Revenues collected by the Subfranchisor. | Monthly on the 20th day of each month | This fee is for continued assistance we may provide to you, including advisory assistance in the promotion of Unit Franchises, sale of clients, and referral of leads, additionally, it includes a support phone line and email ticketing system for general use and troubleshooting within NBDS. |
| Billing and Collection Fees | An invoice servicing fee of the greater of $1,000 or 1% of your Gross Revenues and $25 for each unit franchise statement (Waived for first 12 months. See Remarks.). | Monthly on the 20th day of each month | Under the Unit Franchise Agreement, your Unit Franchise will appoint you as its billing and collections agent. For 12 months after you begin operating and indefinitely after an event of default, you will delegate that responsibility to us. We provide this service at no charge during the initial 12-month period (except for the cost of postage). If we provide the service after an event of default or, at your request, beyond the initial 12-month period, this fee will be assessed by us. |
| Deficiencies | Reimbursement of our costs in performing your obligations. | Immediately upon receipt of invoice | If you do not satisfy your obligations under the Subfranchise Rights Agreement, we may perform your obligations for you but have no obligation to do so. |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago may perform a subfranchisee's obligations if the subfranchisee fails to meet them under the Subfranchise Rights Agreement. However, Anago is under no obligation to do so. If Anago does perform the subfranchisee's obligations, the subfranchisee is responsible for reimbursing Anago for all costs incurred. This reimbursement is due immediately upon receipt of an invoice from Anago.
This clause in the FDD means that if a subfranchisee fails to meet certain requirements or duties outlined in their agreement, Anago has the option to step in and fulfill those obligations on their behalf. This could include anything from failing to provide adequate support to unit franchisees to not meeting specific performance metrics.
While this provision offers a safety net of sorts, it's important to note that Anago is not required to intervene. The subfranchisee remains primarily responsible for their own performance and compliance. Furthermore, if Anago does choose to step in, the subfranchisee will be responsible for covering all associated costs, which could potentially strain their financial resources. Prospective franchisees should carefully review the Subfranchise Rights Agreement to fully understand their obligations and the potential consequences of non-compliance.