Under the Subfranchise Rights Agreement, what right was granted to 'Us' regarding Anago Unit Franchises, and where is this territory located?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. We and AFI entered into a subfranchise rights agreement (the "Subfranchise Rights Agreement") under which AFI granted Us the right to operate as an Anago subfranchisor and to grant Anago Unit Franchises in the state of State, in the counties of territory (our "Subfranchise Territory").
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Subfranchise Rights Agreement grants 'Us' (Anago Franchising, Inc.) the right to operate as an Anago subfranchisor and to grant Anago Unit Franchises. This right is specifically designated within a certain territory.
The territory where 'Us' can operate as a subfranchisor and grant Anago Unit Franchises is defined as 'the state of State, in the counties of territory'. This means the subfranchise territory is limited to specific counties within a particular state, as defined in the agreement.
For a prospective franchisee, this indicates that the subfranchisor's ability to award franchises is geographically restricted. A potential franchisee should confirm the specific state and counties that constitute the Subfranchise Territory to understand the scope of the subfranchisor's operations and their own potential market.