Is the Anago Subfranchisor required to dedicate resources to Client Solicitation Services throughout the term of the agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 3.6 - Client Accounts
- (a) Subfranchisor is authorized and obligated to search for, solicit, engage with, market janitorial and other approved facilities-related services to, and sign contracts with Clients in the Area to be serviced by Unit Franchisees in the Area (the "Client Solicitation Services").
Toward that end, Subfranchisor will, throughout the Term of this Agreement, secure and maintain resources dedicated to performing the Client Solicitation Services.
Franchisor reserves the right to set forth in the Anago Manuals certain minimum standards with respect to the Client Solicitation Services, including setting parameters for how they are provided and by whom, and establishing certain performance metrics such as minimum number of proposals produced to prospective Clients and minimum number of Client contracts executed.
All marketing, sales, promotional and solicitation materials for procuring Clients in the Area are to be submitted to Franchisor for its prior review and written approval and may not be used before obtaining such approval.
Notwithstanding the foregoing, Subfranchisor shall refer all National Accounts to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Subfranchisor is authorized and obligated to perform Client Solicitation Services. These services include searching for, soliciting, engaging with, and marketing janitorial and other approved facilities-related services to potential clients within their designated area. The Subfranchisor is also responsible for signing contracts with these clients, who will be serviced by Unit Franchisees in the area.
Anago requires that the Subfranchisor secure and maintain resources specifically dedicated to performing these Client Solicitation Services throughout the entire term of the Subfranchise Agreement. Anago retains the right to establish minimum standards for these services in the Anago Manuals. These standards may include parameters for how the services are provided, who provides them, and performance metrics such as the minimum number of proposals submitted to prospective clients and the minimum number of client contracts executed.
All marketing, sales, promotional, and solicitation materials used to procure clients in the area must be submitted to Anago for prior review and written approval before they can be used. However, the Subfranchisor must refer all National Accounts to Anago. This ensures that Anago maintains control over the brand's image and marketing strategies while also setting expectations for the Subfranchisor to actively engage in client acquisition within their territory.