Under what conditions can Anago accelerate the maturity of a note?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Should You decline all Initial Business offered during the Initial Offering Period, then We have the right to terminate this Agreement. If We terminate this Agreement, We will keep all fees You paid to Us and, if You financed a portion of the Initial Fee, the unpaid portion will be forgiven. If We do not exercise the right to terminate this Agreement and You have financed a portion of the Initial Fee, the
unpaid balance becomes immediately payable.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
Based on the 2025 FDD, Anago can demand immediate payment of the unpaid balance of the initial franchise fee if a franchisee declines all initial business offered during the initial offering period and Anago chooses not to terminate the franchise agreement.
Specifically, if a new Anago franchisee declines all initial business opportunities presented to them during the specified initial offering period, Anago has the option to terminate the franchise agreement. However, if Anago decides not to terminate the agreement, the unpaid balance of any financed portion of the initial franchise fee becomes immediately due and payable by the franchisee.
This clause serves as a financial protection mechanism for Anago. It ensures that franchisees who choose not to engage in the business opportunities provided, but remain within the franchise system, are still obligated to fulfill their financial commitments to the company. For a prospective franchisee, this highlights the importance of carefully considering the initial business offerings and understanding the financial implications of declining them.