If an Anago subfranchise agreement is terminated, what specific actions is the subfranchisor prohibited from doing regarding identifying with the Anago brand?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 9.4 - Cessation of Operation
- (a) Subfranchisor will immediately cease operation of the Subfranchise Business and shall not directly or indirectly, at any time or in any manner identify itself or any business as a current or former Anago Subfranchise, franchisee, licensee or dealer of, or otherwise associated with, Franchisor or the System. Without limiting the generality of the foregoing, Subfranchisor shall immediately: (i) cease selling Unit Franchises for the Franchisor; (ii) cease using all advertising materials, forms and other materials bearing the Proprietary Marks; (iii) cease holding itself out as a Subfranchisor of Franchisor; (iv) take all steps necessary to disassociate itself from Franchisor and the System; (v) cease solicitations of Clients; (vi) cease all communication with all Clients; (vii) cease providing services to Unit Franchisees; and (viii) promptly and at its own expense make the alterations Franchisor may specify in the Anago Manuals (or otherwise) to distinguish the Premises clearly from its former appearance in order to prevent public confusion. Franchisor is free to sell new Unit Franchises, enter into new Subfranchise rights agreements or other arrangements in the Area without any obligation to the Subfranchisor. Subfranchisor shall immediately assign all Client Accounts to Franchisor in accordance with Section 9.5 below.
- (b) Subfranchisor shall furnish to Franchisor within thirty (30) days after the effective date of the termination or expiration of this Agreement, evidence satisfactory to Franchisor of Subfranchisor's compliance with the foregoing obligations.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, after termination of the Subfranchise Agreement, the subfranchisor must immediately cease operation of the Subfranchise Business. The subfranchisor is prohibited from identifying themselves or any business as a current or former Anago subfranchise, franchisee, licensee, or dealer, or as otherwise associated with Anago or its system. This includes ceasing to sell unit franchises for Anago and ceasing the use of all advertising materials, forms, and other materials bearing Anago's proprietary marks.
Furthermore, the subfranchisor must stop holding themselves out as a subfranchisor of Anago and take all necessary steps to disassociate themselves from Anago and its system. This extends to ceasing solicitations of clients, ceasing all communication with all clients, and ceasing providing services to unit franchisees. The subfranchisor is also required to promptly make alterations that Anago specifies in the Anago Manuals to distinguish the premises clearly from its former appearance to prevent public confusion.
These measures are in place to protect Anago's brand identity and prevent confusion in the marketplace after a subfranchise agreement ends. Anago is free to sell new unit franchises or enter into new subfranchise agreements in the area without any obligation to the former subfranchisor. The subfranchisor must also provide evidence of compliance with these obligations to Anago within 30 days after the termination or expiration date of the agreement.