What must an Anago franchisee demonstrate to assume additional accounts?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
At Our option, You will join in as a party to the Accounts secured by Us through a contract with a Client or those contracts will be assigned to You, in either case until the earlier of (a) the expiration or termination of this Agreement, (b) the contract with the Client is terminated, cancelled, or transferred, or (c) any situation arises whereby You errantly cease service to the Account. All Accounts will initially be between Us and the Client. All payments made by a Client under an Account will be sent directly to Us. You will receive the gross monthly revenues from the Account less the fees owed to Us as stated in Section 3.1 and any other liability You may have to Us. You are not permitted to offer, exchange or transfer Accounts that have been assigned to Your Unit Franchise or to which Your Unit Franchise has become a party by joinder except pursuant to a third-party's purchase of Your Anago business in accordance with this Agreement. You are not permitted to perform or invoice for janitorial or other services offered through Your Unit Franchise directly to those Accounts or to perform or invoice the Account for such services outside of the contract. You may however solicit and negotiate additional business with Clients assigned to You. All such additional business must be reflected on an amendment to the contract with the Account and will be subject to the provisions of the assignment of the contract, including Our appointment as Your agent for billing and collections related to the additional business. We will invoice for those services retaining Our fees earned under this Agreement. All Accounts We
assign to You or to which you become a party by joinder must be serviced in accordance with the times, frequency of service and cleaning specifications as determined by the Client.
You acknowledge and agree that we or AFI may negotiate contracts with third parties that provide that their products and services will be the only such products or services that are offered by the Anago System. If we notify you that such a contract has been executed, you agree that you will offer only that third party's products or services and will not provide any products or services to Clients that are competitive with that third party's products or services.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, an Anago Unit Franchisee's eligibility for account assignments depends on their adherence to the franchise agreement. Anago has the option to assign accounts secured through client contracts to the franchisee. This arrangement lasts until the franchise agreement expires or terminates, the client contract ends, or the franchisee ceases to service the account properly.
Clients make payments directly to Anago, and the franchisee receives the gross monthly revenue minus fees owed to Anago and any other liabilities. Franchisees cannot transfer assigned accounts without Anago's approval, typically during a sale of the franchise. They must also adhere to the service schedule and specifications set by the client.
Furthermore, Anago may negotiate exclusive contracts with third-party suppliers. Franchisees must use these approved products and services, and they cannot offer competing products without violating the agreement. This ensures consistency and quality across the Anago system, but it also limits the franchisee's choice of suppliers.