If there is an infringement on Anago's copyrighted work, who has the discretion to take action?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon any infringement of, or challenge to, your use of any copyrighted work, you are obligated to immediately notify us and we have sole discretion to take any action as we deem appropriate.
If we deem it advisable to modify or discontinue use of any copyrighted work and/or use one or more new or derivative copyrighted work, you are obligated to do so.
We are not required by the Subfranchise Rights Agreement to defend you against any infringement, unfair competition or other claim respecting your use of any copyrighted work.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 41–43)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago retains sole discretion to take action in the event of an infringement on or challenge to the use of any copyrighted work. The franchisee is obligated to immediately notify Anago of any such infringement or challenge. This means that while franchisees must inform Anago of any potential copyright issues, Anago alone decides whether to pursue legal action or other remedies.
This arrangement is typical in franchising, as franchisors like Anago need to protect their brand and intellectual property consistently across all franchise locations. By maintaining control over infringement actions, Anago can ensure a uniform approach and protect the overall value of its trademarks and copyrighted materials. The FDD also states that Anago is not required to defend the franchisee against any infringement claims related to the franchisee's use of copyrighted work.
For a prospective Anago franchisee, this means they must rely on Anago to protect the copyrighted materials they use in their business. While franchisees are responsible for reporting any potential infringements, they do not have the power to independently address the issue. This underscores the importance of using Anago's materials only as authorized and seeking clarification from Anago if there are any questions about permissible use. Franchisees should also be aware that they are not entitled to legal defense from Anago in case of copyright-related claims.