Under what conditions can Anago secure a replacement for a disabled franchisee owner and require reimbursement of costs and expenses?

Based on Anago's 2025 Franchise Disclosure Document, if a franchisee defaults in performing their obligations under the franchise agreement, Anago has the right, but not the obligation, to step in and perform those obligations. If Anago chooses to do so, the franchisee is required to reimburse Anago for the actual costs incurred while performing those obligations, along with accrued interest on overdue amounts. Interest begins accruing on the 10th day after Anago demands reimbursement.

This means that if a franchisee becomes disabled and cannot fulfill their contractual duties, Anago can take over the operations to maintain the business. However, this is not an obligation for Anago, but rather a right they can exercise. The franchisee would then be responsible for reimbursing Anago for all costs associated with this intervention, including any interest on late payments.

This clause protects Anago by ensuring business continuity and adherence to brand standards even if a franchisee is unable to operate the business. However, it places a financial burden on the franchisee, who must cover Anago's costs. A prospective franchisee should clarify with Anago what specific circumstances would trigger this intervention and how the associated costs are calculated and documented.