Within what timeframe will Anago notify a franchisee of the approval or disapproval of a proposed supplier?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
If you propose to purchase or lease any equipment, supplies, advertising materials, or other products or services from an unapproved supplier, you must first submit to us a written request for approval, or request the supplier to do so itself. We have the right to require, as a condition of our approval that our representatives be permitted to inspect the supplier's facilities, and that samples
from the supplier be delivered, at our option, either to us or to an independent, certified laboratory we designate for testing. We will not be liable for damage to any sample that may result from the testing process. You will pay a charge not to exceed the reasonable cost of the inspection and the actual cost of the testing. We may also require as a condition to our approval, that the supplier present satisfactory evidence of insurance, for example, product liability insurance, protecting us, our subfranchisors and Unit Franchisees from all claims from the use of the item within the System. We reserve the right, at our option, to re-inspect the facilities and products of any approved supplier and continue to sample the products at the supplier's expense and to revoke approval upon the supplier's failure to continue to meet our standards and specifications. We will notify you in writing within 30 days of the approval or disapproval of the supplier. Our criteria for supplier approval are not available to you or proposed suppliers, as we and our predecessors and affiliates have developed these criteria through the expenditure of extensive work and time and the criteria are considered confidential information.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if a franchisee proposes a new supplier, Anago will notify the franchisee in writing within 30 days of the approval or disapproval of the supplier. This timeframe applies after the franchisee or the proposed supplier submits a written request for approval. Anago retains the right to inspect the supplier's facilities and require samples for testing as part of the approval process.
This 30-day notification period is important for prospective Anago franchisees because it sets a clear expectation for how long the approval process will take. Franchisees need to be aware of this timeframe when sourcing products or services from suppliers not already approved by Anago. If a supplier is disapproved, the franchisee must stop purchasing from that supplier within a reasonable time, but no later than 30 days after receiving the disapproval notice from Anago.
Anago's criteria for supplier approval are confidential and not disclosed to franchisees or proposed suppliers. Anago may also re-inspect approved suppliers and sample their products, with the supplier bearing the expense. Anago can revoke approval if a supplier fails to meet their standards. This ongoing oversight helps Anago maintain quality and uniformity within the franchise system.
It is also important to note that Anago may receive rebates from approved suppliers based on franchisee purchases. For example, in 2023, Anago received a 5% to 20% rebate from franchisee purchases of branded items. While Anago is not currently an approved vendor for any particular product or service, they do act as an intermediary between the franchisee and the designated insurance carrier for required insurance.