Under what conditions will an Anago franchisee be required to pay liquidated damages for premature termination?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
nd agents as Your agent and attorney in fact, which appointment is coupled with an interest and is irrevocable, to act for and on Your behalf to execute, verify, and file any such documents and to do all other lawfully permitted acts to further the purposes of this Section 4.11 with the same legal force and effect as if executed by You. The obligations of this Section 4.11 shall survive any expiration or termination of the Agreement.
SECTION 4.12 LIQUIDATED DAMAGES FOR SALE OF PROHIBITED PRODUCTS OR SERVICES.
You agree that the offer to sell or the sale of unauthorized or prohibited products and services within the Anago System or operation of Your Unit Franchise will result in damages to Us. You agree these damages will be measured as $100 for each day that You offer or sell unauthorized or prohibited products or services, payable to Us upon demand. These damages are in addition to Our other rights including Our right to strictly enforce or terminate this Agreement as provided
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a franchisee may be required to pay liquidated damages under specific circumstances. If an Anago franchisee offers to sell or sells unauthorized or prohibited products or services within the Anago system or during the operation of their unit franchise, they will incur damages to Anago.
To address these damages, the franchisee agrees to pay $100 for each day they offer or sell unauthorized or prohibited products or services. This amount is payable to Anago upon demand. These liquidated damages are in addition to any other rights Anago has, including the right to enforce or terminate the agreement and seek injunctive relief, unless such rights are excluded by law.
Anago and the franchisee acknowledge that precisely calculating the full extent of damages from unauthorized products or services is difficult. Therefore, they agree that the set liquidated damages are reasonable and not a penalty, providing a clear and certain resolution for this specific breach of contract.