Under what condition will Anago send monthly invoices indefinitely?

According to Anago's 2025 Franchise Disclosure Document, Anago will send monthly invoices to every client account serviced by a subfranchisee's unit franchisees for the first 12 months. After this initial period, Anago may, at its discretion, continue to send these invoices indefinitely if an Event of Default occurs.

An "Event of Default" is not specifically defined in the provided excerpt, but it generally refers to a situation where the subfranchisee fails to meet their obligations under the Subfranchise Rights Agreement. This could include failure to make payments, maintain standards, or comply with other terms of the agreement. The indefinite invoicing by Anago after a default serves as a mechanism for the company to maintain control over the billing and collection process, likely to ensure that payments are properly collected and distributed, and that Anago's fees and royalties are protected.

For a prospective Anago subfranchisee, this means that maintaining compliance with the Subfranchise Rights Agreement is crucial. Failure to do so could result in Anago taking over the invoicing process indefinitely, which could add additional oversight and potentially increase the risk of errors or delays in payments. It is important to understand what constitutes an "Event of Default" under the agreement to avoid triggering this condition.