factual

Is written consent required from Anago before entering into contracts with National Accounts?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

Under your Subfranchise Rights Agreement, you must refer all "National Accounts" to us. You are not permitted to enter into any contracts with National Accounts without first obtaining our written consent. We reserve the right to, either ourselves, or through a designee, enter into contracts

for the performance of Anago services to National Accounts wherever or however the National Account is originated. "National Account" means any client or prospective client that, directly or through its affiliates: (i) owns, manages, operates, controls, or is responsible for ten (10) or more locations in your Area; (ii) owns, manages, operates, controls or is responsible for multiple locations, one or more of which is in your Area and one or more of which is outside of your Area; and (iii) requests that we or our affiliates submit or allow us or our affiliates to submit a response to a request for proposals ("RFP") and we determine that you do not meet the National Account's qualifications to submit an RFP response or enter into the contract. . If we sign a contract with a National Account with locations in your Area and we are not prohibited under our contract with the National Account from doing so, we may provide you the option, on terms and conditions we specify and on a nonexclusive basis, to license Unit Franchisees in the Area to perform services for such locations within your Area.

Source: Item 12 — TERRITORY (FDD pages 36–38)

What This Means (2025 FDD)

According to Anago's 2025 Franchise Disclosure Document, a subfranchisee is required to obtain written consent from Anago before entering into any contracts with National Accounts. Anago maintains the right to contract directly, or through a designee, for Anago services to National Accounts, regardless of where the National Account originated.

Anago defines a "National Account" as any client or prospective client that owns, manages, operates, controls, or is responsible for ten or more locations within the subfranchisee's area. It also includes those with multiple locations, some inside and some outside the subfranchisee's area. Additionally, if a client requests a proposal and Anago determines that the subfranchisee does not meet the client's qualifications to submit a response or enter into a contract, that client is considered a National Account.

If Anago secures a contract with a National Account that has locations within the subfranchisee's area, and if the contract with the National Account allows, Anago may offer the subfranchisee the option to license Unit Franchisees in the area to perform services for those locations. This option would be subject to terms and conditions specified by Anago and would be on a nonexclusive basis. This means that while the subfranchisee may have the opportunity to service these National Account locations, it is not guaranteed and is subject to Anago's discretion and the terms of their agreement with the National Account.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.