Is the license granted to the Subfranchisor under the Anago NBDS License Agreement exclusive?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Grant of License. During the Term, and subject to the terms of this Agreement, the Franchisor hereby agrees to: (a) grant Subfranchisior access to a Software program currently known as IGAS, an internet-based Software currently known as AnagoCloud, and an internet-based application currently known as Anago CleanSource; (b) furnish Subfranchisior with certain Related Materials (as later defined in this Agreement) in support of the Software; (c) grant the Subfranchisior a nontransferable and nonexclusive license to use the Software and Related Materials which are described pursuant to any Schedule to this Agreement signed by both parties ("Schedule"); and (d) provide Software maintenance, all as described in this Agreement.The term "Software" means the object code version of any proprietary or third-party software to which Franchisor provides Subfranchisor access for use in connection with its Subfranchise Business, including any updates or new versions thereof.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the license granted to the Subfranchisor for the software and related materials is non-transferable and non-exclusive. Specifically, Anago grants the Subfranchisor access to software programs like IGAS, AnagoCloud, and Anago CleanSource, along with related materials.
This means that Anago retains the right to grant similar licenses to other subfranchisors or even operate directly within the same territory. The Subfranchisor cannot transfer this license to another party. This non-exclusive arrangement is a standard practice in franchising, allowing the franchisor to expand its network and maintain control over its brand and system.
For a prospective Anago subfranchisor, this implies that they will not have exclusive rights to the software and related materials within their territory. They should be aware that Anago could potentially license the same software to other subfranchisors or use it themselves. This could impact the subfranchisor's competitive advantage and market share, so it's important to consider this factor when evaluating the Anago franchise opportunity.