Under what circumstances related to employee conduct on an Anago account can Anago elect to terminate the franchise agreement and keep all fees paid?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
(iii) If You lose an Initial Account or an Initial Account transfer for the following reasons:
- (a) You or Your employee's theft or willful destruction of a Client's property;
- (b) Abandonment of service without notice to Us;
- (c) Use or selling of illegal drugs while performing services;
- (d) Use of alcoholic beverages while performing services;
- (a) You or Your employee's theft or willful destruction of a Client's property;
(e) Use of the Client's equipment without approval of the Client;
(f) Change of the service terms without notifying us;
(g) Continuing to service an Account after We have terminated the Account;
(h) Your failure to meet background requirements that may be requested by the Client; or
(i) Any other Event of Default has occurred, whether caused by you or your employees; then, We have no obligation to replace the Account and may elect to terminate this Agreement and keep all fees You paid, with the right to demand immediate payment of all amounts owed to Us.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago can elect to terminate the franchise agreement and keep all fees paid if certain misconduct occurs by the franchisee or their employees on a client's property. Specifically, this includes instances of theft or willful destruction of a client's property, abandonment of service without notice to Anago, use or selling of illegal drugs while performing services, use of alcoholic beverages while performing services, or use of the client's equipment without approval.
These stipulations highlight the importance of careful employee screening, training, and supervision for Anago franchisees. The franchisee is responsible for the actions of their employees and contractors. Failure to prevent these types of behaviors can lead to the loss of the franchise and all fees paid to Anago.
Additionally, Anago has no obligation to replace the account lost due to these reasons. This policy underscores the significant financial risk to the franchisee if employee misconduct results in the loss of an account. The franchisee also risks immediate termination of the agreement and forfeiture of all fees paid to Anago.
Prospective Anago franchisees should carefully consider the implications of these termination clauses and ensure they have robust policies and procedures in place to prevent employee misconduct. This includes conducting thorough background checks, providing comprehensive training, and implementing effective monitoring and supervision practices.