Under what agreement does ACS guarantee Anago's performance?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
| (a) Purchases from Us or Our Affiliates. We do not allow You to use Our tools, | |
|---|---|
| equipment or supplies to perform the work of Your Unit Franchise. You must own Your own tools, | |
| equipment and supplies necessary to perform the work for which the Account has contracted. | |
| However, You must purchase only from Us or an approved supplier the items stated in Exhibits 3, | |
| 4, and 5 (The items described on Exhibits 3 and 4 are included in the Initial Fee for programs I | |
| through X+. Purchasers of programs 0 and 500 will not receive these supplies as part of the Initial | |
| Fee and must | purchase them separately). This is in addition to Your ongoing needs for cleaning |
| supplies and other items that We require, if implemented on a System-wide basis. |
BACKGROUND
- A. Anago Cleaning Systems, Inc. ("ACS"), a Florida corporation, owns a distinctive System, including certain Proprietary Property and Proprietary Marks, to be used in the operation of commercial service businesses providing janitorial and other approved services under the trade name "Anago." ACS has granted a license to Anago Franchising, Inc. ("AFI" or "Franchisor"), a Florida corporation, to sublicense the use of the System to subfranchisors and their franchisees.
- B.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 62)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago Cleaning Systems, Inc. (ACS) does not directly guarantee the performance of Anago Franchising, Inc. (AFI) to the franchisee. Instead, AFI grants the right to operate as an Anago subfranchisor to individuals through a subfranchise rights agreement.
ACS plays a role as the parent company of AFI, owning the Proprietary Marks and Proprietary Property that AFI sublicenses to subfranchisors and their franchisees. However, the document explicitly states that ACS is not a party to the Unit Franchise Agreement between the subfranchisor and the franchisee and, therefore, has no obligation to the franchisee.
Prospective franchisees should understand that their agreement is with the subfranchisor (AFI) and not with ACS. Any guarantees or obligations are those of AFI as outlined in the Subfranchise Rights Agreement. It is important for potential franchisees to carefully review the terms of the agreement with AFI to understand their rights and responsibilities.