factual

Can I face competition from other franchisees, outlets that Anago owns, or other channels of distribution or competitive brands that Anago controls?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

hat we require then, in addition to our other rights under the Subfranchise Rights Agreement, we may reduce or redefine the Area upon notice to you.

You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, except as described below and provided you are in compliance with your obligations under your Subfranchise Rights Agreement, we will not, during the Term of your Subfranchise Rights Agreement, grant any other person the right to act as our subfranchisor in the Area.

Reservation of Rights

You are not granted any options, rights of first refusal or similar rights to acquire additional development rights or franchises for additional territories, and will not be permitted to relocate your Anago Subfranchise Rights Business.

You receive only those rights that we expressly grant to you in the Subfranchise Rights Agreement. You acquire no rights by inference, innuendo or extrapolation. We expressly reserve, for ourselves and our affiliates, without compensation to you of any sort, (a) the right to engage in any activities, anywhere in the world, unless we expressly agree in the Subfranchise Rights Agreement that we or our affiliates will not engage in them, and (b) all rights not expressly granted to you under the Subfranchise Rights Agreement, including, without limitation, the right to (i) develop and operate, directly or indirectly, other businesses offering products and services, whether similar or not to the products or services offered by the Unit Franchises, under different marks within or outside the Area; (ii) offer and sell products and services that are the same as or substantially similar to those offered by Unit Franchisees under the Proprietary Marks through our website and otherwise via the Internet, through catalogs and direct mail solicitations and other alternative methods of distribution within or outside the Area; (iii) advertise and promote the System and Proprietary Marks wherever we deem appropriate; (iv) operate and grant other persons the right to operate retail businesses identified by the Proprietary Marks that offer and sell janitorial services and products to Clients outside the Area; and (v) bid on and enter into contracts with National Accounts.

Restrictions on Solicitations

You are not permitted to solicit Unit Franchisees or clients outside your Area, including through other channels of distribution such as the Internet, catalogs, telemarketing or other direct marketing. As long as you are in compliance with your obligations under the Subfranchise Rights Agreement, we will not solicit or license another to solicit the development of Anago Unit Franchisees within your Area.

National Accounts

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. .

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

What This Means (2025 FDD)

According to Anago's 2025 Franchise Disclosure Document, as a subfranchisee, you may face competition from various sources. Specifically, you could encounter competition from other Anago franchisees, outlets that Anago owns directly, or other distribution channels or competitive brands that Anago controls. However, Anago states that, provided you comply with your Subfranchise Rights Agreement obligations, Anago will not grant another person the right to act as their subfranchisor in your designated area during the agreement's term, except as otherwise described in the FDD. This indicates that while direct subfranchisor competition is limited, other forms of competition are possible.

Anago also retains significant rights regarding National Accounts, which could impact a subfranchisee's business. Anago reserves the right to enter into contracts for Anago services with National Accounts, either directly or through a designee, regardless of where the National Account originates. A "National Account" is defined as a client or prospective client with ten or more locations in your area, multiple locations both inside and outside your area, or one that requests Anago to submit a proposal and Anago determines that you do not meet the National Account's qualifications to submit an RFP response or enter into the contract. If Anago secures a contract with a National Account in your area, they may offer you the option to license Unit Franchisees to perform services for those locations, but this is on a nonexclusive basis and under terms and conditions Anago specifies.

Furthermore, Anago reserves the right to engage in any activities and all rights not expressly granted to you in the Subfranchise Rights Agreement. This includes the right to develop and operate other businesses offering similar or different products/services under different marks, offer and sell products/services similar to those offered by Unit Franchisees through the internet or other alternative methods of distribution, and bid on and enter into contracts with National Accounts. These reservations of rights highlight that Anago retains considerable control over market activities and potential competition within and outside your designated area. As a subfranchisee, you are restricted from soliciting Unit Franchisees or clients outside your Area, including through the Internet or other direct marketing channels. However, Anago states that they will not solicit or license another to solicit the development of Anago Unit Franchisees within your Area, as long as you are in compliance with your obligations under the Subfranchise Rights Agreement.

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.