factual

Under what conditions can Anago terminate the 'Other Services' agreement?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

If You are in default We may, at Our option, terminate all rights granted to You under this Agreement, without affording You an opportunity to cure the default, effective immediately upon notice to You, upon the occurrence of any of the following Events of Default:

  • (a) If You cease to perform contracted service to the Accounts for more than 3 consecutive days without Our consent;

  • (b) If You fail or refuse to comply with any mandatory specification, standard or operating procedure We require in this Agreement, in the Manual or otherwise in writing, on the cleanliness or sanitation of the Anago Unit Franchise;

  • (c) If You, or Your officer, director, owner or managerial employee is convicted of a felony, a crime of moral turpitude or any other crime or offense that We reasonably believe is likely to have a material adverse effect on the System, the Proprietary Property, the goodwill associated with the Proprietary Property, or Our interest in any of the Proprietary Property, unless You immediately and legally terminate the individual as an officer, director, owner and employee;

  • (d) If You deny Us the right to inspect the Anago Unit Franchise or to audit the Records of the Anago Unit Franchise;

  • (e) If You engage in conduct that is harmful to or reflects unfavorably on You or the System in that the conduct exhibits a reckless disregard for the physical or mental well-being of employees, Clients, Our representatives or the public at large, including battery, assault, sexual harassment or discrimination, racial harassment or discrimination, alcohol or drug abuse or other forms of threatening, outrageous or unacceptable behavior as determined in Our sole discretion;

  • (f) If You, contrary to this Agreement, purport to encumber or transfer any rights or obligations under this Agreement (including transfers of any interest in You), without Our written consent;

  • (g) If any breach occurs under Sections 6.2 or 13.1 concerning confidentiality and noncompetition covenants;

  • (h) If You knowingly maintain false Records, or knowingly submit any false Records to Us;

  • (i) If You misuse or make any unauthorized use of the Proprietary Property or otherwise materially impair the goodwill associated with the Proprietary Property or Our rights in the Proprietary Property;

  • (j) If You receive from Us 3 or more Notices of Default for the same or similar defaults during any 12 consecutive months, even if all defaults were cured;

  • (k) If You lose or voluntarily cease service to all Anago contracts You have agreed to service, and subsequently fail to complete corrective measures classes with 90 days of notice to attend corrective measures classes;

  • (l) If You stop service to contracts assigned to You and decline all subsequent offers of contracts by Anago for a period of 360 days after the last date of service to an Anago Client ; or

  • (m) If Anago is unable to contact You because You have vacated Your premises and failed to inform the local Anago office pursuant to Section 8.4 of this Agreement.

SECTION 11.4 TERMINATION BY US - AFTER NOTICE AND RIGHT TO CURE.

If You are in default We may, at Our option, terminate all rights granted to You under this Agreement effective upon delivery of notice to you, following an opportunity to cure the default, as follows: (a) if a serious or imminent threat or danger to public health or safety results from the construction, maintenance or operation of the Anago Unit Franchise and the threat or danger remains uncorrected for 5 days after Your receipt of written notice from Us or a governmental authority. If a cure cannot be reasonably completed in this time, then all reasonable steps to cure must begin within this time, but a cure must be completed promptly within 30 days after receipt of written notice; (b) You violate any health, safety, or sanitation law, ordinance, or regulation and do not correct the failure or refuse to do so within 3 days after written notice from Us or a governmental authority. If a cure cannot be reasonably completed in this time, then all reasonable steps to cure must begin within this time, but a cure must be completed within 30 days after receipt of written notice; and (c) except as otherwise provided above, You have 30 days after delivery from Us of a written Notice of Default specifying the nature of the default to remedy any default other than as stated above, and provide evidence of cure satisfactory to Us.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

What This Means (2025 FDD)

According to Anago's 2025 Franchise Disclosure Document, Anago can terminate the agreement if the franchisee is in default. Anago may terminate all rights granted to the franchisee without providing an opportunity to cure the default, effective immediately upon notice, if any of the listed events occur.

These events include ceasing contracted service to accounts for more than 3 consecutive days without Anago's consent, failing to comply with mandatory specifications or operating procedures related to cleanliness or sanitation, or if the franchisee, or their officer, director, owner, or managerial employee, is convicted of a felony or a crime that could negatively impact the Anago system. Further reasons for immediate termination involve denying Anago the right to inspect the franchise or audit records, engaging in conduct harmful to the system or individuals, attempting to transfer rights under the agreement without consent, breaching confidentiality or noncompetition covenants, knowingly maintaining false records, misusing proprietary property, receiving three or more notices of default within 12 months (even if cured), losing or ceasing service to all Anago contracts and failing to attend corrective measures classes within 90 days of notice, stopping service to contracts and declining all subsequent contract offers for 360 days, or if Anago is unable to contact the franchisee due to vacated premises without notification.

Anago can also terminate the agreement following an opportunity to cure the default. This includes situations where a serious threat to public health or safety results from the franchise's construction, maintenance, or operation and remains uncorrected for 5 days after written notice. A franchisee also risks termination if they violate any health, safety, or sanitation law, ordinance, or regulation and do not correct the failure within 3 days after written notice. Except as provided above, the franchisee has 30 days after delivery of a written Notice of Default to remedy any other default and provide satisfactory evidence of the cure.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.