Under what conditions can Anago review the financial statements of shareholders of a Subfranchisor corporation?

According to Anago's 2025 Franchise Disclosure Document, if a Subfranchisor makes a permitted assignment to a corporation, Anago has the right to review the financial statements of all shareholders who hold 10% or more of the corporation's equity.

This provision allows Anago to maintain oversight of the financial stability and integrity of its Subfranchisors, even when the Subfranchise is operated through a corporate entity. By reviewing the financial statements of major shareholders (those holding 10% or more equity), Anago can assess the financial health and commitment of the individuals ultimately responsible for the Subfranchise's performance.

For a prospective Anago Subfranchisor, this means that if they choose to operate their Subfranchise through a corporation, they must be prepared to disclose the financial statements of any shareholder owning 10% or more of the company. This requirement is in place to protect Anago's interests and ensure that the Subfranchise is managed by financially responsible individuals. It is a fairly standard practice in franchising to ensure the financial stability of franchisees, especially those with significant responsibilities like Subfranchisors.