What constitutes a 'Competitive Business' according to the Anago subfranchise agreement?

According to Anago's 2025 Franchise Disclosure Document, a 'Competitive Business' is defined broadly within the context of the subfranchise agreement. It encompasses any business, activity, or endeavor, whether or not it is for compensation, that is engaged wholly or partially, directly or indirectly, in the janitorial facilities-related services business. This definition also extends to selling licenses or franchises for, or providing services to, janitorial and related services businesses, or licensors or franchisors of such businesses.

This definition has significant implications for prospective Anago subfranchisees. It means that during the term of their agreement, and potentially even after, their business activities are restricted to avoid direct or indirect competition with Anago. This restriction could limit their ability to diversify their income streams or pursue other business ventures related to the janitorial services industry.

For example, an Anago subfranchisee could not operate a separate janitorial service under a different brand, nor could they consult for another janitorial franchise system. The breadth of this definition underscores the importance of understanding the full scope of these restrictions before entering into a subfranchise agreement with Anago. Prospective subfranchisees should carefully consider whether these limitations align with their long-term business goals and personal interests.