As an Anago Unit Franchisee, what are the consequences of failing to notify the Subfranchisor of any changes or lapse in coverage of my insurance policy if I am not insured through the Subfranchisor's policy?

According to Anago's 2025 Franchise Disclosure Document, if a Unit Franchisee is not insured through the Subfranchisor's insurance policy, they are obligated to inform the Subfranchisor of any changes to or lapses in their insurance coverage. Failing to do so constitutes a material default of the Franchise Agreement.

This requirement ensures that Anago maintains consistent risk management and protection across its franchise network. By mandating that Unit Franchisees report any changes or lapses in their insurance, Anago can promptly address any gaps in coverage and ensure that all franchisees meet the necessary insurance standards. This protects both the franchisee and the Anago brand from potential liabilities.

For a prospective Anago franchisee, this means understanding and adhering to the insurance requirements outlined in the Franchise Agreement. If you choose to obtain your own insurance coverage rather than participate in the Subfranchisor's policy, you must be diligent in notifying the Subfranchisor of any changes or lapses to avoid being in default of your agreement. This includes keeping detailed records of your insurance policies and setting reminders to review and update coverage as needed. Certificates of Insurance and Declarations Pages typically will not list all of the coverage's required by Subfranchisor. Upon request, Franchisees may need to provide copies of the entire insurance policy, including all endorsements, in order to provide evidence of that they meet all of the above requirements.