Can an Anago Subfranchisor use the Proprietary Marks as security for any obligation or indebtedness?

According to Anago's 2025 Franchise Disclosure Document, a Subfranchisor is explicitly prohibited from using the Proprietary Marks as security for any obligation or indebtedness. This restriction is in place to protect the integrity and value of the Anago brand and its associated trademarks. The franchisor maintains strict control over the use of its Proprietary Marks to ensure consistent brand representation and quality standards across all franchise locations.

This restriction means that an Anago Subfranchisor cannot leverage the Anago trademarks or logos as collateral when seeking financing or credit. This is a common practice in franchising, as the franchisor wants to prevent the brand's image from being compromised if a franchisee defaults on their financial obligations. The Proprietary Marks are considered the exclusive property of Anago Cleaning Systems, Inc., and any goodwill associated with their use benefits the franchisor.

Furthermore, the Subfranchisor's right to use the Proprietary Marks is limited to the uses expressly authorized in the Subfranchise Agreement. Any unauthorized use of the marks constitutes an infringement of Anago's rights. This includes using the marks in a manner not approved by Anago or using them as part of the Subfranchisor's corporate name (with limited exceptions) or domain name without proper authorization. These measures ensure that the Anago brand remains protected and that its value is not diluted by unauthorized or inappropriate use.