What are the limitations on the operation of the Anago Subfranchise Business regarding sales?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
You are limited in the operation of your Anago Subfranchise Business to the sale of Anago Unit Franchises within the exclusive Area designated in your Subfranchise Rights Agreement, continuing support of such Unit Franchises, sales of janitorial and approved facilities-related products and services contracted for, services to support your Unit Franchises, and all ancillary services performed in addition to or conjunction with service contracts.
In performing franchise sales and commercial sales of services, you agree to use the forms, computers/software and procedures as provided within the Anago Manuals.
You are not restricted in the customers to whom you may sell the above-mentioned Unit Franchisees (so long as they meet our minimum standards, as set forth in our then-current form of Unit Franchise Agreement) and respective service contracts in your Area.
We have the sole right to add product and service items to the Anago System. At our direction, you will require your Unit Franchisees to offer these products and services to their customers.
There is no limitation on our right to make changes to the types of products and services you may be authorized to permit or require your Unit Franchisees to sell.
We may periodically set the maximum and minimum price that you and your Unit Franchisees may charge for services and products. Otherwise, you may determine the prices you charge your customers.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 43–44)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a subfranchisee is limited to selling Anago Unit Franchises within their exclusive designated area as defined in the Subfranchise Rights Agreement. This includes providing ongoing support to these unit franchisees. Subfranchisees can also sell janitorial and approved facilities-related products and services that have been contracted for, along with services to support their unit franchisees, and any additional services performed with service contracts.
Anago subfranchisees must use the forms, computer systems, software, and procedures outlined in the Anago Manuals when selling franchises and commercial services. They are not restricted in who they can sell Unit Franchises to, as long as these potential franchisees meet Anago's minimum standards, as detailed in the current Unit Franchise Agreement. However, subfranchisees are not allowed to solicit Unit Franchisees or clients outside of their designated area, including through online channels, catalogs, telemarketing, or direct marketing.
Anago retains the sole right to add new products and services to the Anago system, and subfranchisees will be required to ensure their Unit Franchisees offer these new items to their customers. Anago also reserves the right to modify the types of products and services that Unit Franchisees are authorized to sell. Anago may periodically set maximum and minimum prices for services and products that both subfranchisees and their Unit Franchisees can charge. Otherwise, subfranchisees are free to determine their own pricing.
Upon termination of the Subfranchise Agreement, the subfranchisee must immediately stop selling Unit Franchises, cease using Anago's advertising materials and proprietary marks, and discontinue soliciting clients or communicating with them. They must also stop providing services to Unit Franchisees and take steps to disassociate themselves from Anago to prevent public confusion. Anago is then free to sell new Unit Franchises or enter into new subfranchise agreements in the area without any obligation to the former subfranchisee.