Under what conditions can Anago Franchising International (AFI) assume the Client Accounts from the Subfranchisor?

According to Anago's 2025 Franchise Disclosure Document, Anago Franchising International (AFI) has the option to assume the Client Accounts from the Subfranchisor under specific circumstances. AFI can exercise this option upon the termination or expiration of the Subfranchise Agreement. Additionally, AFI can assume the Client Accounts if the Subfranchisor defaults under the Subfranchise Agreement.

Upon assuming the Client Accounts, AFI steps into the shoes of the Subfranchisor. This means AFI takes on all the responsibilities and obligations outlined in the Client Accounts that were previously applicable to the Subfranchisor. Simultaneously, AFI gains all the rights and privileges that the Subfranchisor was entitled to under the terms and conditions of the Client Accounts.

It's important to note that as long as AFI has not exercised its option to take assignment of the Client Accounts, AFI is not responsible for performing any services, duties, or obligations related to those accounts. In this period, the Subfranchisor remains fully liable for all such services, duties, and obligations. After AFI assumes the accounts due to termination, expiration, or default, AFI has the right to assign ALL Client Accounts to an approved Anago subfranchisor designated by AFI.