What is Anago prohibited from doing with the Collateral without prior written consent?

According to Anago's 2025 Franchise Disclosure Document, franchisees are prohibited from using the Proprietary Property as security for any obligation or indebtedness. The Proprietary Property includes trademarks, service marks and other intellectual property associated with the Anago brand.

This restriction means that franchisees cannot use Anago's trademarks or other proprietary assets as collateral to secure loans or other financial obligations. This is a fairly standard clause in franchise agreements, designed to protect the brand's intellectual property and prevent it from being encumbered by the franchisee's debts.

For a prospective Anago franchisee, this implies that they will need to secure financing and manage their business operations without leveraging the Anago brand's assets. This could potentially limit their access to capital or require them to find alternative forms of collateral. Franchisees should carefully consider this restriction when planning their business finances and ensure they have sufficient resources to operate without relying on the Proprietary Property as security.