Does the Anago FDD state that there are any known infringing uses of the Proprietary Marks?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
There are no infringing uses or superior prior rights actually known to us that could materially affect your use of the Proprietary Marks. However, ACS's assertion of common law rights to Proprietary Marks does not prohibit others from using the Proprietary Marks or confusingly similar variations of the Proprietary Marks who may have established prior rights to the use of the Proprietary Marks, or confusingly similar variations of the Proprietary Marks, in the territories where neither we nor our franchisees have operated or advertised under the Proprietary Marks and that are not within the natural zone of expansion for future franchised or company-owned units, provided others do so in good faith and without actual knowledge of our existence or our franchisees' use of the Proprietary Marks. ACS would therefore be unable to prohibit the use of the Proprietary Marks by others who had prior use of the Proprietary Marks or confusingly similar variations of the Proprietary Marks at the time ACS first used them. If others establish prior rights to the Proprietary Marks in certain territories, we may be restricted in our ability to use the Proprietary Marks when expanding into those territories.
Source: Item 13 — TRADEMARKS (FDD pages 38–41)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, there are no known infringing uses of its proprietary marks that could materially affect a franchisee's use of those marks. However, Anago acknowledges that its assertion of common law rights to its proprietary marks does not prevent others from using similar marks if those others established prior rights in territories where Anago or its franchisees do not operate or advertise, and which are not within Anago's natural zone of expansion. This is contingent on those others acting in good faith and without knowledge of Anago's existence or its franchisees' use of the marks.
Anago would not be able to prohibit the use of the Proprietary Marks by others who had prior use of the Proprietary Marks or confusingly similar variations of the Proprietary Marks at the time Anago first used them. If others establish prior rights to the Proprietary Marks in certain territories, Anago may be restricted in its ability to use the Proprietary Marks when expanding into those territories.
This means that while Anago believes its trademarks are protected, there is a risk that other businesses may have pre-existing rights to use similar marks in specific geographic areas. This could potentially limit Anago's ability to expand into those areas or require them to rebrand in those locations. Prospective franchisees should be aware of this potential risk and consider it when evaluating the franchise opportunity, especially if they plan to operate in a region with a high concentration of similar businesses.