How does misuse of proprietary property affect Anago receipts?

According to Anago's 2025 Franchise Disclosure Document, misusing or making unauthorized use of Anago's proprietary property can lead to significant repercussions. Specifically, if a franchisee misuses the proprietary property or materially impairs the goodwill associated with it, Anago has the right to terminate the franchise agreement immediately without providing an opportunity to correct the issue. This termination is effective upon notice to the franchisee.

In practical terms, this means that an Anago franchisee must be extremely careful in how they use Anago's trademarks, service marks, trade names, logos, and copyrighted information. Any deviation from the standards and specifications set by Anago could be considered a misuse of proprietary property. This includes using the marks in unauthorized ways, such as in domain names or on social media without prior written consent, or failing to maintain the required signage at the business premises.

The implications of such a termination are severe. The franchisee would lose all rights granted under the franchise agreement, including the right to operate the Anago Unit Franchise. This could result in a complete loss of the franchisee's investment and future income. Furthermore, the franchisee's actions could also negatively impact the goodwill associated with the Anago brand, affecting other franchisees and the overall system.

This clause underscores the importance of adhering strictly to Anago's guidelines and standards for using its proprietary property. Franchisees should seek clarification from Anago if they are unsure about the proper use of any of the proprietary marks or materials to avoid potential default and termination of their franchise agreement.