Regarding claims against Anago's Proprietary Marks, is an Anago Subfranchisor permitted to communicate with parties other than the Franchisor and its counsel?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) If Subfranchisor becomes aware of any infringement, unfair competition, challenge or use similar to any Proprietary Mark, Subfranchisor will promptly notify Franchisor in writing immediately and in no event later than 10 days following the date Subfranchisor becomes aware of any such infringement, unfair competition, challenge or use;
- (b) Subfranchisor will not communicate with anyone except Franchisor and its counsel about any infringement, challenge or claim except under judicial process. Franchisor has sole discretion to take action as it deems appropriate (including not taking any action) in any infringement, challenge or claim, and the sole right to control exclusively any litigation or other proceeding involving any infringement, challenge or claim involving any Proprietary Mark. Subfranchisor must sign all instruments and documents, render all assistance, and do all acts that Franchisor's attorneys deem necessary or advisable in order to protect and maintain Franchisor's interest in any litigation or proceeding involving the Proprietary Marks or otherwise to protect and maintain Franchisor's interests in the Proprietary Marks; provided Franchisor will reimburse Subfranchisor for the reasonable out-of-pocket expenses incurred and paid by Subfranchisor in complying with these requirements; and
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a Subfranchisor is generally restricted from communicating with parties other than Anago and its counsel regarding any infringement, challenge, or claim against Anago's Proprietary Marks.
Specifically, the FDD states that the Subfranchisor must promptly notify Anago in writing, no later than 10 days after becoming aware of any infringement, unfair competition, challenge, or use similar to any Proprietary Mark. However, the Subfranchisor is explicitly prohibited from communicating with anyone else about such matters, except under judicial process.
Anago retains sole discretion to take action, including no action at all, regarding any infringement, challenge, or claim. Anago also has the exclusive right to control any litigation or proceeding involving the Proprietary Marks. The Subfranchisor is obligated to assist Anago by signing documents and providing necessary support as deemed advisable by Anago's attorneys to protect Anago's interests in the Proprietary Marks. Anago will reimburse the Subfranchisor for reasonable out-of-pocket expenses incurred in complying with these requirements.