Under the Anago subfranchise agreement, what claims are Subfranchisor and Subfranchisor's owners prohibited from bringing?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 13.9 - Waiver of Class Actions
NO PARTY SHALL INITIATE OR PARTICIPATE IN ANY CLASS ACTION LITIGATION CLAIM AGAINST ANY OTHER PARTY BOUND HEREBY.
Section 13.10 - Survival of Provisions
The provisions of this ARTICLE 13 shall continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement, however effected.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to the 2025 Anago Franchise Disclosure Document, Section 13.9 titled "Waiver of Class Actions" states that no party can initiate or participate in any class action litigation claim against any other party bound by the agreement. This means that Anago subfranchisees waive their right to participate in a class action lawsuit against Anago.
This waiver is a legal agreement where the subfranchisee gives up their right to join with other franchisees to sue Anago as a group. This type of clause is included to protect Anago from large, consolidated lawsuits that could arise from multiple franchisees experiencing similar issues.
This provision remains in effect even after the Anago Subfranchise Rights Agreement expires or terminates, as stated in Section 13.10, "Survival of Provisions". Therefore, the subfranchisee is bound by this waiver even after the franchise relationship ends. A prospective franchisee should be aware of this clause and understand its implications before entering into the agreement.