Under the Anago Collateral Assignment, can Anago assign the Client Accounts to any subfranchisor, or are there restrictions?

According to Anago's 2025 Franchise Disclosure Document, Anago can assign Client Accounts to another subfranchisor under specific conditions. As part of the Collateral Assignment of Client Accounts, a subfranchisor assigns their rights to client accounts to Anago Franchising, Inc. (AFI) as security for the subfranchisor's obligations under the Subfranchise Agreement.

Upon the termination or expiration of the Subfranchise Agreement, or if the Subfranchisor defaults, Anago has the option to assume the Client Accounts. If Anago exercises this option, it takes the place of the Subfranchisor and assumes all obligations and rights related to those Client Accounts.

Following such an event, Anago has the right to assign ALL Client Accounts to an approved Anago subfranchisor, as designated by AFI. This indicates that while Anago can reassign these accounts, it is limited to only assigning them to subfranchisors that Anago has approved.