What does the Anago Subfranchisor grant to the Franchisor as security for their obligations?

Based on the 2025 FDD, Anago subfranchisors cannot use the Proprietary Marks as security for any obligation or indebtedness. The Proprietary Marks are the intellectual property of Anago, and the subfranchisor's right to use them is limited to what is expressly authorized in the agreement. Any unauthorized use of the Proprietary Marks is considered an infringement of Anago's rights.

This restriction protects Anago's brand and reputation by preventing subfranchisors from potentially encumbering the trademarks with debt. If a subfranchisor were to default on a loan secured by the Proprietary Marks, it could lead to a transfer of rights that compromises Anago's control over its brand standards.

This is a fairly standard clause in franchise agreements, as franchisors typically want to maintain strict control over their trademarks and brand identity. Prospective Anago subfranchisors should understand that they cannot leverage the Anago brand as collateral for financing or other obligations.