What rights does Anago license to third parties regarding the use of Proprietary Marks and the System?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Subfranchisor acknowledges the importance of protecting the Proprietary Marks and ensuring that all Proprietary Marks are used in strict accordance with the terms and conditions of this Agreement. Subfranchisor further agrees that:
- (a) Subfranchisor may sublicense the Proprietary Marks to the Unit Franchisees only in accordance with the terms of the Unit Franchise Agreement approved by Franchisor. Subfranchisor shall use its best efforts to ensure that all Unit Franchisees in the Area strictly comply with all terms, conditions, standards and specifications relating to the Proprietary Marks at all times during the Term of this Agreement;
- (b) Subfranchisor will use only the Proprietary Marks as designated by Franchisor and will use them only in the manner required or authorized and permitted by Franchisor;
- (c) Subfranchisor's right to use the Proprietary Marks is limited to the uses expressly authorized under this Agreement, and any unauthorized use of the Proprietary Marks is an infringement of Franchisor's rights;
- (d) Subfranchisor will not use the Proprietary Marks as security for any obligation or indebtedness;
- (e) Subfranchisor will not use the Proprietary Marks as part of his or her corporate, partnership, limited liability company or other business name which must consist of 4 letters or numbers (for example, "TROM Corp." or "1234, Inc." (but may use the Anago trade name as a fictitious, trade or assumed name that is properly registered, if required by law (for example, "TROM Corp. d/b/a Anago of Tampa"). Subfranchisor shall not authorize any Unit Franchisee in the Area to use the Proprietary Marks as part of any name of any corporation, partnership, limited liability company or other business entity;
- (f) Subfranchisor shall not register or use any domain name or URL that contains, uses or displays the words "Anago Cleaning Systems" or any portion thereof, or the initials "ACS,"
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago Cleaning Systems, Inc. owns the rights to the Proprietary Marks and grants Anago Franchising, Inc. the right to sublicense the use of the System to subfranchisors and their franchisees. The subfranchisor can sublicense the Proprietary Marks to unit franchisees, but only according to the terms outlined in the Unit Franchise Agreement that Anago Franchising, Inc. approves. The subfranchisor must make their best effort to ensure that all unit franchisees strictly comply with the standards relating to the Proprietary Marks during the agreement's term.
The subfranchisor is restricted to using only the Proprietary Marks that Anago designates and in the manner that Anago requires or authorizes. The right to use the Proprietary Marks is limited to what is expressly authorized in the agreement, and any unauthorized use infringes on Anago's rights. The subfranchisor cannot use the Proprietary Marks as security for any obligation or debt.
Furthermore, the subfranchisor cannot use the Proprietary Marks as part of their corporate, partnership, or LLC name, although they can use the Anago trade name as a fictitious name if properly registered. The subfranchisor is also prohibited from authorizing any unit franchisee to use the Proprietary Marks as part of their business entity name. Lastly, the subfranchisor cannot register or use any domain name or URL that contains "Anago Cleaning Systems" or any portion thereof, or the initials "ACS".