What happens if an Anago franchisee violates the terms of the Subfranchise Rights Agreement regarding the Proprietary Marks?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
the Proprietary Marks when expanding into those territories.
Your Rights and Obligations With Respect to the Proprietary Property Including the Proprietary Marks
Your rights to use the Proprietary Marks are derived solely from your Subfranchise Rights Agreement and are limited to the operation of your Anago Subfranchise Rights Business under your Subfranchise Rights Agreement and all applicable standards, specifications, and operating procedures we require during the Term. Any unauthorized use of the Proprietary Property including the Proprietary Marks is a breach of your Subfranchise Rights Agreement and an infringement of our and ACS'srights in and to the Proprietary Marks. "Proprietary Property" refers to the Proprietary Marks, Confidential Information (as defined in Item 14) and copyrighted information or us and our affiliates that you are entitled to use under the Subfranchise Rights Agreement.
Your use of the Proprietary Property and any goodwill established by your use inures to our exclusive benefit. The Subfranchise Rights Agreement does not confer any goodwill or other interest in the Proprietary Property to you, other than the right to operate an Anago Subfranchise Rights Business in compliance with the Subfranchise Rights Agreement in the Area. All provisions of the
Subfranchise Rights Agreement applicable to the Proprietary Property will apply to any other trademarks, service marks, commercial symbols, designs, artwork, and logos that we adopt, use, authorize and sublicense to you to use during the Term.
You must use the Proprietary Marks as the sole trade identification of your Anago Franchise, and must identify your Anago Subfranchise Rights Business in the form we require as the independent owner and operator of the Anago Franchise. You must use all Proprietary Marks and other commercial symbols that we sublicense in full compliance with rules we require. You are prohibited from using any Proprietary Marks (including any future commercial marks we license) in the sale of any unauthorized product or service or in any manner we have not explicitly authorized. You cannot use the Proprietary Marks as, or part of, your corporate or partnership name. You must follow our instructions in applying for any fictitious, trade or assumed name for the Anago trade name.
Source: Item 13 — TRADEMARKS (FDD pages 38–41)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, any unauthorized use of the Proprietary Marks is considered a breach of the Subfranchise Rights Agreement. This also constitutes an infringement of Anago's and ACS's rights to the Proprietary Marks. The term 'Proprietary Property' encompasses the Proprietary Marks, Confidential Information, and copyrighted material that franchisees are authorized to use under the Subfranchise Rights Agreement. Therefore, franchisees must adhere strictly to the terms outlined in their agreement regarding the use of these marks.
Anago franchisees are required to use the Proprietary Marks as the sole trade identification for their Anago franchise. They must also identify their Anago Subfranchise Rights Business in the manner prescribed by Anago, indicating their status as an independent owner and operator. Franchisees must use all Proprietary Marks and commercial symbols in full compliance with Anago's rules. They are specifically prohibited from using any Proprietary Marks in the sale of unauthorized products or services or in any manner not explicitly approved by Anago.
Furthermore, franchisees cannot incorporate the Proprietary Marks into their corporate or partnership name. They must also follow Anago's instructions when applying for any fictitious, trade, or assumed name related to the Anago trade name. Franchisees are also prohibited from using the Proprietary Property as security for any obligation or debt. Subfranchisors are restricted from registering or using any domain name or URL that includes 'Anago Cleaning Systems' or any part of it, the initials 'ACS' or 'AFI,' any Proprietary Marks, or any confusingly similar words or symbols without prior written consent from Anago. Similarly, the use of any Proprietary Mark or derivation thereof on the Internet, in electronic advertising, or on social media requires Anago's prior written consent.