Will Anago unreasonably withhold approval of my business premises lease agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
You must designate your own Premises within the Area from which you will manage and administer Your Unit Franchise. If You do not operate Your Anago Unit Franchise out of Your residence but instead occupy a business premises, such business premises and lease agreement will be subject to our prior written approval, which will not be unreasonably withheld.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if you choose to operate your Anago Unit Franchise from a business premises rather than your residence, Anago's prior written approval is required for both the business premises and the lease agreement. However, Anago states that this approval will not be unreasonably withheld. This clause protects franchisees from arbitrary denials of suitable locations.
This provision means that while Anago has the right to review and approve your chosen business location and lease terms, they must have a legitimate, justifiable reason for disapproval. For example, if the location is in a disreputable area or the lease terms are unfavorable, Anago could reasonably withhold approval. However, they cannot reject a suitable location or fair lease agreement without a valid business reason.
As a prospective franchisee, it is important to understand what factors Anago considers when evaluating a business premises and lease agreement. You should discuss this with Anago during your due diligence to ensure you choose a location and negotiate lease terms that are likely to be approved. This can help avoid delays and potential conflicts down the road. It would also be prudent to document all communications and agreements regarding the location and lease to protect your interests.