What is the relationship between the Anago Subfranchise Rights Agreement and the operation of the Anago Subfranchise Business?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
You may use your Anago Subfranchise only for the operation of your Anago Subfranchise Business in accordance with the Anago Subfranchise Rights Agreement. You must keep the Anago Subfranchise open and in normal operation for the minimum hours and days as we require in the Manuals or otherwise in writing except as may be limited by local governmental regulation or the landlord's rules and regulations. You may not operate any other business from your Anago Master Franchise office.
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, the Anago Subfranchise Rights Agreement grants the franchisee the right to operate a subfranchise within a defined area. This agreement dictates the terms and conditions under which the franchisee can sell Anago Unit Franchises, support those franchises, and sell related products and services. The franchisee's operation of the Anago Subfranchise Business must align with the stipulations outlined in the Anago Subfranchise Rights Agreement. Anago provides a franchise disclosure document to the franchisee to be modified to include information required by federal and state regulations. Anago will update their franchise disclosure document in accordance with current FTC requirements. Any changes to comply with current laws that the franchisee or their attorney make must be forwarded to Anago, and any other changes must be approved by Anago.
The franchisee is restricted to operating the Anago Subfranchise Business within the scope defined by the agreement, including the sale of Anago Unit Franchises within the designated area, providing support to those franchisees, and selling approved janitorial and facilities-related products and services. The franchisee must adhere to the minimum hours and days of operation as specified in the Anago Manuals or in writing, unless otherwise limited by local regulations or landlord rules. The franchisee is also obligated to use the forms, computer systems, software, and procedures outlined in the Anago Manuals for franchise sales and commercial service sales.
Anago retains the right to add or change the products and services offered within the Anago System, and franchisees are required to ensure their Unit Franchisees offer these products and services. While Anago may set maximum and minimum prices for services and products, franchisees generally have the autonomy to determine the prices they charge their customers. The Subfranchise Rights Agreement also defines the territory in which the franchisee can operate, although this territory is not exclusive, and Anago reserves certain rights, such as the right to operate other businesses or sell services through alternative channels of distribution. The franchisee is not allowed to solicit Unit Franchisees or clients outside their designated area, and Anago, in turn, will not solicit or license others to solicit the development of Anago Unit Franchisees within the franchisee's area, provided the franchisee is compliant with the Subfranchise Rights Agreement.