According to the Anago FDD, what constitutes 'Proprietary Property'?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Your rights to use the Proprietary Marks are derived solely from your Subfranchise Rights Agreement and are limited to the operation of your Anago Subfranchise Rights Business under your Subfranchise Rights Agreement and all applicable standards, specifications, and operating procedures we require during the Term. Any unauthorized use of the Proprietary Property including the Proprietary Marks is a breach of your Subfranchise Rights Agreement and an infringement of our and ACS'srights in and to the Proprietary Marks. "Proprietary Property" refers to the Proprietary Marks, Confidential Information (as defined in Item 14) and copyrighted information or us and our affiliates that you are entitled to use under the Subfranchise Rights Agreement.
Your use of the Proprietary Property and any goodwill established by your use inures to our exclusive benefit. The Subfranchise Rights Agreement does not confer any goodwill or other interest in the Proprietary Property to you, other than the right to operate an Anago Subfranchise Rights Business in compliance with the Subfranchise Rights Agreement in the Area. All provisions of the
Subfranchise Rights Agreement applicable to the Proprietary Property will apply to any other trademarks, service marks, commercial symbols, designs, artwork, and logos that we adopt, use, authorize and sublicense to you to use during the Term.
Source: Item 13 — TRADEMARKS (FDD pages 38–41)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, "Proprietary Property" encompasses several key elements that are crucial to the operation of an Anago franchise. Specifically, it refers to the Proprietary Marks, Confidential Information (as defined in Item 14 of the FDD), and copyrighted information of Anago and its affiliates. These are the assets that a subfranchisee is entitled to use under the Subfranchise Rights Agreement.
Anago subfranchisees' rights to use the Proprietary Marks are derived solely from the Subfranchise Rights Agreement. This agreement dictates that the use of these marks is limited to the operation of the Anago Subfranchise Rights Business and must adhere to all standards, specifications, and operating procedures required by Anago during the term of the agreement. Any unauthorized use of the Proprietary Property, including the Proprietary Marks, constitutes a breach of the Subfranchise Rights Agreement and an infringement of Anago's rights.
The agreement emphasizes that any goodwill established through the use of the Proprietary Property by a subfranchisee inures to the exclusive benefit of Anago. The Subfranchise Rights Agreement does not grant the subfranchisee any goodwill or other interest in the Proprietary Property, other than the right to operate an Anago Subfranchise Rights Business in compliance with the agreement within their designated area. All terms of the Subfranchise Rights Agreement that apply to the Proprietary Property also extend to any other trademarks, service marks, commercial symbols, designs, artwork, and logos that Anago may adopt, use, authorize, and sublicense to the subfranchisee during the term of the agreement.