Under what conditions can Anago require a Subfranchisor to replace their computer systems?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Computer System/Software. Subfranchisor must provide financial and business records and other information to Franchisor according to reporting formats, methodologies and time schedules that Franchisor establishes. As part of these record-keeping requirements, Franchisor requires Subfranchisor, at its sole cost and expense, to obtain and use the computer hardware and software system (including Franchisor's proprietary software) as designated by Franchisor from time to time in the day-to-day operation of Subfranchisor's business. Currently, Subfranchisor is required to install the computerized NBDS management systems and accept the NBDS (in accordance with the NBDS License Agreement attached as Exhibit D to the FDD) which may be modified at any time by in response to business, operations and marketing conditions. Subfranchisor shall enter into any software licenses, terms of use and software maintenance agreements and pay any license and maintenance fees required by Franchisor or its Affiliates. Subfranchisor shall replace any such systems when deemed advisable by Franchisor given the age, cost to operate, condition of the system then in use, the then-current and anticipated technology, the information then in use with other Subfranchisors of the System, the needs of the System, and any other factors that may be relevant. If the Subfranchisor voluntarily fails to use the computer system and Anago proprietary software as directed by the Franchisor it will be a material breach under this agreement that the Franchisor at its option may terminate this agreement.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago requires Subfranchisors to obtain and use specific computer hardware and software systems, including Anago's proprietary software, for their day-to-day operations. The Subfranchisor bears the sole cost and expense of this system. Currently, Subfranchisors must install the computerized NBDS management systems and accept the NBDS.
Anago can modify these system requirements at any time in response to business, operations, and marketing conditions. The Subfranchisor must enter into any software licenses, terms of use, and software maintenance agreements and pay any associated fees required by Anago or its affiliates.
Anago can deem it advisable for the Subfranchisor to replace their computer systems based on several factors, including the age of the system, the cost to operate it, the system's condition, current and anticipated technology, the information in use with other Subfranchisors, the needs of the Anago system, and any other relevant factors. Failure to use the computer system and Anago proprietary software as directed by Anago constitutes a material breach of the agreement, potentially leading to termination of the agreement at Anago's option.