What does 'Proprietary Property' mean in the context of an Anago franchise agreement?

According to Anago's 2025 Franchise Disclosure Document, Proprietary Property encompasses several key elements that are essential to the Anago franchise system. Specifically, it includes AFI's (Anago Franchising, Inc.), the franchisor's, or their affiliates' Proprietary Marks, Confidential Information, and copyrighted information. As an Anago franchisee, you are granted the right to use this Proprietary Property, but only under the specific terms and conditions outlined in the franchise agreement. This means you can leverage Anago's brand recognition, operational secrets, and marketing materials to operate your franchise.

The franchise agreement strictly governs how an Anago franchisee can use the Proprietary Property. Franchisees must adhere to the standards and specifications set by Anago. This includes using the Proprietary Property solely for the operation of the Anago Unit Franchise and displaying the Proprietary Marks prominently on all designated materials. Franchisees cannot use the Proprietary Property as security for any obligation or indebtedness. Furthermore, franchisees must follow Anago's instructions for registering any required fictitious, trade, or assumed business names related to the "Anago" trade name.

Anago retains ownership of the Proprietary Property, and all goodwill associated with the Anago Unit Franchise inures directly and exclusively to AFI's benefit. Franchisees cannot claim any ownership or rights to the Proprietary Property beyond what is expressly granted in the agreement. If a franchisee somehow secures rights to any of the Proprietary Marks (or any other Proprietary Property) not expressly granted under the agreement, they must immediately notify Anago and assign all rights to AFI. This ensures that Anago maintains control over its brand and intellectual property, protecting the integrity and uniformity of the franchise system.

Prospective Anago franchisees should understand that their use of the Proprietary Property is contingent upon strict adherence to the franchise agreement and Anago's standards. Failure to comply with these requirements could result in a breach of contract and potential loss of the franchise. Therefore, it is crucial to carefully review and understand the terms and conditions related to the use of Proprietary Property before entering into a franchise agreement with Anago.