If an Anago franchisee becomes aware of a potential infringement of Anago's proprietary property by someone other than ACS, AFI, Anago, or its Unit Franchisees, what is the deadline for the franchisee to notify Anago in writing?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
If there is any claim of infringement, unfair competition or other challenge to Your right to use any Proprietary Property, or if You become aware of any use of, or claims to, any Proprietary Property by persons other than ACS, AFI, Us or Our Unit Franchisees, You will promptly (within 7 days) notify Us in writing. You will not communicate with anyone except Us and Our counsel on any infringement, challenge or claim except under judicial process. We have sole discretion as to whether We take any action on any infringement, challenge or claim, and the sole right to control any litigation or other proceeding involving any infringement of, challenge or claim to any Proprietary Property. You must sign all documents, render all assistance, and do all acts that Our attorneys deem necessary or advisable in order to protect and maintain Our interest in any litigation or proceeding involving the Proprietary Property or otherwise to protect and maintain Our interests in the Proprietary Property.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if a franchisee becomes aware of potential infringement, unfair competition, or challenges to the use of Anago's proprietary property by parties other than ACS, AFI, Anago itself, or its other Unit Franchisees, the franchisee must promptly notify Anago in writing within 7 days of becoming aware of the issue.
This requirement ensures that Anago is quickly informed of any potential threats to its brand and intellectual property. The franchisee is also prohibited from communicating with anyone else about the infringement, challenge, or claim, except for Anago and its counsel, unless required by judicial process. This restriction centralizes the handling of such issues with Anago, allowing them to control the response and any related legal proceedings.
Anago retains sole discretion on whether to take action regarding the infringement, challenge, or claim. The franchisee is obligated to assist Anago by signing documents and performing necessary acts to protect Anago's interests in any litigation or proceeding related to the proprietary property. This close control over infringement matters is typical in franchising, as the strength and uniformity of the brand are critical to the success of all franchisees.
In return for the franchisee's cooperation, Anago will indemnify the franchisee against damages they are held liable for in any proceeding resulting from the franchisee's authorized use of the proprietary property, provided the franchisee has met the notification requirements and allows Anago to control the defense and settlement of the action.