Under what conditions can the Designated Manager's responsibilities be delegated for an Anago Subfranchise Rights Business?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Subfranchise Rights Business must be conducted as a limited liability company or a corporation. An individual who is the controlling shareholder or managing member of that entity must act as the Designated Manager. The Designated Manager must complete, to our satisfaction, our initial training program and be responsible for supervising Your activities under this Agreement. This obligation may not be delegated without Our prior approval.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 43)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, each Anago Subfranchise Rights Business must operate as a limited liability company or a corporation. The individual who is the controlling shareholder or managing member of the entity is required to act as the Designated Manager. This Designated Manager must successfully complete Anago's initial training program and is responsible for supervising the activities under the Subfranchise Rights Agreement.
The critical point is that the Designated Manager's responsibilities cannot be delegated without Anago's prior approval. This means that the person who initially completes the training and is designated to oversee the Anago Subfranchise Rights Business must maintain that role unless Anago explicitly allows someone else to take over those duties.
This requirement ensures that Anago maintains a level of control and oversight over each Subfranchise Rights Business, safeguarding brand standards and operational consistency. For a prospective franchisee, this means being prepared to personally commit to the role of Designated Manager and understanding that any change in this role requires Anago's consent. This could impact succession planning or the ability to bring in outside management without franchisor approval.