Does the Anago franchise agreement prohibit a franchisee from being connected with the ownership, management, operation, control, or conduct of a Competitive Janitorial or Facilities-Related Franchised Business within the Anago Subfranchise Territory, and if so, in what capacities is this prohibited?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
"Competitive Business" means a business, activity or endeavor, whether or not for compensation, that is engaged wholly or partially, directly or indirectly, in the janitorial facilities-related services business or selling licenses or franchises for or providing services to janitorial and related services businesses or licensors or franchisors of janitorial and related services businesses.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a 'Competitive Business' is defined as any business, activity, or endeavor, whether for compensation or not, that is wholly or partially, directly or indirectly, engaged in the janitorial facilities-related services business. This definition also includes selling licenses or franchises for, or providing services to, janitorial and related services businesses, or licensors or franchisors of such businesses.
Therefore, the Anago franchise agreement prohibits a franchisee from being connected with the ownership, management, operation, control, or conduct of a Competitive Janitorial or Facilities-Related Franchised Business within the Anago Subfranchise Territory. This prohibition extends to any involvement, whether compensated or not, and whether direct or indirect, in a competing business.
This restriction is a standard practice in franchising to protect the brand and prevent franchisees from using the franchisor's knowledge and resources to benefit a competing business. Prospective Anago franchisees should carefully consider this restriction and ensure they are not currently involved in any conflicting business activities before entering into the franchise agreement.