Under the Anago agreement, what activities is the Subfranchisor prohibited from engaging in during the term?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Therefore, Subfranchisor is prohibited from altering, editing or changing the Anago Manuals or any part of thereof.
(f) Subfranchisor shall not, itself, or through or in association with any third party, directly or indirectly, collect any money (other than in accordance with this Agreement), or barter or trade for anything of value, from a prospect, Unit Franchisee or any third party, directly or indirectly (including, but not limited to, consideration of any kind furnished by a third party to Subfranchisor or its designee, based upon or resulting from payment by a prospective franchisee or Unit Franchisee to such third party) which is in any way related to: (i) services to be provided by Subfranchisor pursuant to this Agreement; or (ii) the establishment and/or operation of a Unit pursuant to a Unit Franchise Agreement. Additionally, without limiting the generality of the foregoing, Subfranchisor shall not accept or otherwise receive payment including discounts, products, rebates or the like from any existing or prospective franchisee, landlord, vendor, broker, agent or supplier of the System or any representative or agent thereof, in connection with its operations hereunder or in any way related to the System or its Unit Franchisees.
Notwithstanding the foregoing, Subfranchisor shall refer all National Accounts to Franchisor.
Subfranchisor shall not enter into any contracts with National Accounts without first obtaining Franchisor's written consent.
- (d) Subfranchisor will not use the Proprietary Marks as security for any obligation or indebtedness;
- (e) Subfranchisor will not use the Proprietary Marks as part of his or her corporate, partnership, limited liability company or other business name which must consist of 4 letters or numbers (for example, "TROM Corp." or "1234, Inc." (but may use the Anago trade name as a fictitious, trade or assumed name that is properly registered, if required by law (for example, "TROM Corp. d/b/a Anago of Tampa"). Subfranchisor shall not authorize any Unit Franchisee in the Area to use the Proprietary Marks as part of any name of any corporation, partnership, limited liability company or other business entity;
- (f) Subfranchisor shall not register or use any domain name or URL that contains, uses or displays the words "Anago Cleaning Systems" or any portion thereof, or the initials "ACS,"
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, there are several activities a Subfranchisor is prohibited from undertaking during the term of the agreement. The Subfranchisor cannot alter, edit, or change the Anago Manuals or any part of them. This ensures consistency and adherence to Anago's standards across all franchise operations.
Additionally, the Subfranchisor is prohibited from collecting money (except as outlined in the agreement) or bartering/trading for anything of value from prospects, Unit Franchisees, or any third party related to services provided under the agreement or the establishment/operation of a Unit Franchise. They also cannot accept payments, discounts, products, or rebates from existing or prospective franchisees, landlords, vendors, brokers, agents, or suppliers of the Anago system. This prevents conflicts of interest and ensures fair dealings within the Anago franchise network.
Furthermore, the Subfranchisor is required to refer all National Accounts to Anago and cannot enter into contracts with National Accounts without Anago's written consent. The Subfranchisor also cannot use the Proprietary Marks as security for any obligation or indebtedness. They are also restricted from using the Proprietary Marks as part of his or her corporate, partnership, limited liability company or other business name which must consist of 4 letters or numbers. Lastly, the Subfranchisor shall not register or use any domain name or URL that contains, uses or displays the words "Anago Cleaning Systems" or any portion thereof, or the initials "ACS,"
These restrictions are designed to protect Anago's brand, maintain quality control, and ensure equitable practices within the franchise system. Prospective Subfranchisors should carefully consider these limitations to fully understand the scope of their operational freedom and obligations under the Anago Subfranchise Rights Agreement.