Does the restriction on owning a Competitive Business after the termination of the Anago subfranchise agreement apply to a 5% or less beneficial interest in a publicly-held corporation?

According to Anago's 2025 Franchise Disclosure Document, the restriction on owning, maintaining, operating, engaging in, providing assistance to, consulting with, lending to, leasing any real property to, or having any interest, direct or indirect, or being connected in any other capacity with a Competitive Business after the termination of the Anago subfranchise agreement does not apply to a 5% or less beneficial interest in a publicly held corporation. This exception applies if the Competitive Business is located or operated within the Area, any other System Subfranchisor's Area, or 20 miles of the perimeter of the Area or any other System Subfranchisor's Area.

This means that a former Anago subfranchisee can own a small stake (5% or less) in a publicly traded company that might be considered a competitor without violating the terms of the subfranchise agreement. This provides some flexibility for the subfranchisee to invest in other businesses without being penalized.

However, it's important to note that this exception is specifically for publicly held corporations. Any larger ownership stake or involvement with a privately held competitor could still be a violation of the agreement. Anago subfranchisees should carefully consider these restrictions and seek legal counsel if they are unsure about any potential conflicts of interest.