Is the license granted to use the Anago software and related materials 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.
Software does not include source code.
The term "Related Materials" means any printed material not consisting of Software programs, such as Software user instructions, and which is designated by the Franchisor as available under license to the Subfranchisor for the licensed Software to which such Related Materials relate.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the subfranchisor receives a non-exclusive license to use the software and related materials. Specifically, Anago grants the subfranchisor a "nontransferable and nonexclusive license" to utilize the software and related materials as described in any schedule signed by both parties. This license is effective for the term of the agreement, provided the Subfranchise Rights Agreement remains in full effect, unless terminated earlier according to the agreement's terms.
This non-exclusive arrangement means that Anago retains the right to license the same software and materials to other subfranchisors or use them within its own operations. Consequently, the subfranchisor does not have exclusive control over the use of these resources within a specific market or territory. The software includes programs like IGAS, AnagoCloud, and Anago CleanSource, along with any updates or new versions, but excludes the source code. Related Materials include printed materials like software user instructions.
For a prospective Anago subfranchisor, this non-exclusive license has several implications. It means that Anago can authorize other subfranchisors to use the same software, potentially increasing competition or overlap in service areas. The subfranchisor's ability to differentiate their services based on proprietary software features is limited, as other franchisees have access to the same tools. The subfranchisor should focus on service quality, customer relationships, and efficient operations to gain a competitive edge, rather than relying solely on exclusive software capabilities.
Furthermore, the subfranchisor is responsible for obtaining and maintaining the necessary computer hardware, workstations, and mobile devices to operate the software, as specified in the Anago Manuals or the Subfranchise Agreement. They are also responsible for the security of the software and data from external intrusions. The subfranchisor must pay a Software Support Fee of $200 per month, which covers technical support, updates, and installation of approved updates. This fee, along with the non-exclusive nature of the license, should be factored into the subfranchisor's financial planning and operational strategy.