Under the Anago Subfranchise Rights Agreement, what action must I take regarding National Accounts?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Under your Subfranchise Rights Agreement, you must refer all "National Accounts" to us. You are not permitted to enter into any contracts with National Accounts without first obtaining our written consent. We reserve the right to, either ourselves, or through a designee, enter into contracts
for the performance of Anago services to National Accounts wherever or however the National Account is originated. "National Account" means any client or prospective client that, directly or through its affiliates: (i) owns, manages, operates, controls, or is responsible for ten (10) or more locations in your Area; (ii) owns, manages, operates, controls or is responsible for multiple locations, one or more of which is in your Area and one or more of which is outside of your Area; and (iii) requests that we or our affiliates submit or allow us or our affiliates to submit a response to a request for proposals ("RFP") and we determine that you do not meet the National Account's qualifications to submit an RFP response or enter into the contract. . If we sign a contract with a National Account with locations in your Area and we are not prohibited under our contract with the National Account from doing so, we may provide you the option, on terms and conditions we specify and on a nonexclusive basis, to license Unit Franchisees in the Area to perform services for such locations within your Area.
Source: Item 12 — TERRITORY (FDD pages 36–38)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, as a subfranchisee, you are required to refer all National Accounts to Anago. You are not allowed to enter into any contracts with National Accounts without first obtaining written consent from Anago.
Anago defines a "National Account" as any client or prospective client that meets one of three criteria: (i) owns, manages, operates, controls, or is responsible for ten (10) or more locations in your Area; (ii) owns, manages, operates, controls or is responsible for multiple locations, one or more of which is in your Area and one or more of which is outside of your Area; and (iii) requests that Anago or its affiliates submit a response to a request for proposals ("RFP") and Anago determines that you do not meet the National Account's qualifications to submit an RFP response or enter into the contract.
If Anago signs a contract with a National Account that has locations within your designated Area, and if their contract with the National Account permits it, Anago may offer you the option to license Unit Franchisees in your Area to perform services for those locations. This would be subject to terms and conditions specified by Anago and would be on a nonexclusive basis. This means Anago could allow other franchisees to service the same National Account locations in your area.