Under the Anago Subfranchise Rights Agreement, when will a state law regulating the sale of franchises or governing the relationship of a franchisor and its franchise owner apply?

According to Anago's 2025 Franchise Disclosure Document, the applicability of state franchise laws to the Subfranchise Rights Agreement is determined by the specific state in which the franchisee operates. Exhibit H, titled "State Specific Riders State Addenda and Agreement Riders," indicates that additional disclosures required by various state franchise laws will apply only if the applicable state franchise registration and disclosure law applies to the franchisee.

This means that Anago franchisees need to be aware of the specific franchise laws in their state, as these laws will govern aspects of their relationship with Anago. These state-specific addenda modify the standard franchise agreement to ensure compliance with local regulations.

For a prospective Anago franchisee, this highlights the importance of carefully reviewing Exhibit H and understanding the specific requirements of their state's franchise laws. It also underscores the need to consult with a legal professional familiar with franchise law in their state to ensure full compliance and to understand their rights and obligations under both the franchise agreement and applicable state laws.