Does the Anago Subfranchise Rights Agreement grant the franchisee any goodwill interest in the Proprietary Property?

According to Anago's 2025 Franchise Disclosure Document, the Subfranchise Rights Agreement does not grant franchisees any goodwill or other interest in the Proprietary Property, beyond the right to operate an Anago Subfranchise Rights Business in compliance with the agreement within their designated area. The document explicitly states that any goodwill established through the franchisee's use of the Proprietary Property inures to the exclusive benefit of Anago. This means that while franchisees are expected to build the brand within their territory, the value associated with that brand recognition ultimately belongs to Anago.

This arrangement is typical in franchising, where the franchisor retains ownership of the brand and associated intellectual property. Anago franchisees are essentially licensing the use of the brand and system, and any increase in brand value benefits the franchisor. This protects the consistency and standards of the Anago brand across all franchise locations.

For a prospective Anago franchisee, this means that upon termination or expiration of the Subfranchise Rights Agreement, they will not be able to realize any monetary value from the goodwill they have built. The value reverts back to Anago. Therefore, the franchisee's financial return is primarily derived from the profits generated during the term of the agreement, not from the sale of a business with established goodwill. Franchisees should consider this carefully when evaluating the potential return on investment and the long-term value of the franchise.