What exhibit contains the Security Agreement that the Anago Subfranchisor must enter into?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT V - COLLATERAL ASSIGNMENT OF CLIENT ACCOUNTS
THISCOLLATERAL ASSIGNMENT OFCLIENT ACCOUNTS this ("Collateral Assignment") is made by and among Anago Franchising, Inc. ("AFI"), and Corp Name ("Subfranchisor").
WHEREAS, Subfranchisor and its Clients are parties to a certain Anago services contract for janitorial and, as applicable, other facilities-related services (the "Client Accounts");
WHEREAS, Subfranchisor and AFI are parties to a Subfranchise Rights Agreement dated, ____________________, (the "Subfranchise Agreement"), whereby Subfranchisor was granted the right to operate an "Anago Subfranchise Business" within a designated area; and
WHEREAS, as a condition to AFI entering into the Subfranchise Agreement, AFI has required that Subfranchisor, and Subfranchisor has agreed to, assign its right, title and interest in the Client Accounts to AFI, with the right to reassign to an authorized Anago subfranchisor, as security for Subfranchisor's obligations and AFI's rights under the Subfranchise Agreement.
NOW THEREFORE, in consideration of the foregoing and the mutual promises contained herein and in the Subfranchise Agreement, and in order to secure Subfranchisor's obligations and AFI's rights under the Subfranchise Agreement, the parties agree as follows:
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Exhibit V contains the Collateral Assignment of Client Accounts. This agreement is made among Anago Franchising, Inc. (AFI) and the Subfranchisor. The document states that the Subfranchisor and its Clients are parties to an Anago services contract for janitorial and other facilities-related services, referred to as the "Client Accounts".
The exhibit further explains that Anago and the Subfranchisor are parties to a Subfranchise Rights Agreement, where the Subfranchisor was granted the right to operate an Anago Subfranchise Business within a designated area. As a condition of Anago entering into the Subfranchise Agreement, Anago requires the Subfranchisor to assign its rights, title, and interest in the Client Accounts to Anago. This assignment allows Anago to reassign the accounts to an authorized Anago subfranchisor and serves as security for the Subfranchisor's obligations and Anago's rights under the Subfranchise Agreement.
In consideration of the promises outlined in both the Collateral Assignment and the Subfranchise Agreement, the parties agree to secure the Subfranchisor's obligations and Anago's rights under the Subfranchise Agreement. This agreement ensures that Anago has a security interest in the client accounts, which can be reassigned if necessary, and protects Anago's interests in the event of any issues with the Subfranchisor's performance.