Under what conditions might Anago offer additional accounts to a franchisee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
sary to complete the work or the hours you set aside to perform the work.
ARTICLE 2 - OUR DUTIES
We will provide You with the following assistance and services necessary for the operation of Your Anago Unit Franchise, if You are not in default under this Agreement:
SECTION 2.1 ASSIGNMENT OF ACCOUNTS.
At Our option, You will join in as a party to the Accounts secured by Us through a contract with a Client or those contracts will be assigned to You, in either case until the earlier of (a) the expiration or termination of this Agreement, (b) the contract with the Client is terminated, cancelled, or transferred, or (c) any situation arises whereby You errantly cease service to the Account. All Accounts will initially be between Us and the Client. All payments made by a Client under an Account will be sent directly to Us. You will receive the gross monthly revenues from the Account less the fees owed to Us as stated in Section 3.1 and any other liability You may have to Us. You are not permitted to offer, exchange or transfer Accounts that have been assigned to Your Unit Franchise or to which Your Unit Franchise has become a party by joinder except pursuant to a third-party's purchase of Your Anago business in accordance with this Agreement. You are not permitted to perform or invoice for janitorial or other services offered through Your Unit Franchise directly to those Accounts or to perform or invoice the Account for such services outside of the contract. You may however solicit and negotiate additional business with Clients assigned to You. All such additional business must be reflected on an amendment to the contract with the Account and will be subject to the provisions of the assignment of the contract, including Our appointment as Your agent for billing and collections related to the additional business. We will invoice for those services retaining Our fees earned under this Agreement. All Accounts We
assign to You or to which you become a party by joinder must be serviced in accordance with the times, frequency of service and cleaning specifications as determined by the Client.
You acknowledge and agree that we or AFI may negotiate contracts with third parties that provide that their products and services will be the only such products or services that are offered by the Anago System. If we notify you that such a contract has been executed, you agree that you will offer only that third party's products or services and will not provide any products or services to Clients that are competitive with that third party's products or services.
- (a) Offering Period of Initial Business. We will offer to You Accounts generating Gross Monthly Billing under the Program You select in Subsection 3.1(a) within the time period described, after the conditions described below have been satisfied.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago may offer accounts secured through contracts with a client to a franchisee. These accounts are assigned at Anago's option, and the franchisee joins as a party to the accounts. This arrangement lasts until the agreement expires or terminates, the client contract is terminated, cancelled, or transferred, or the franchisee ceases service to the account. All initial accounts are between Anago and the client, with payments sent directly to Anago. The franchisee then receives the gross monthly revenues from the account, minus fees owed to Anago as specified in Section 3.1 and any other liabilities.
The franchisee cannot offer, exchange, or transfer assigned accounts, except when a third party purchases the Anago business according to the agreement. Additionally, franchisees cannot directly perform or invoice for services to these accounts outside the contract. However, franchisees can solicit and negotiate additional business with assigned clients. Any additional business must be reflected in an amendment to the contract and is subject to the assignment provisions, including Anago's role as the billing and collections agent. Anago will invoice for these services and retain its fees as outlined in the agreement. All assigned accounts must be serviced according to the times, frequency, and cleaning specifications determined by the client.
Furthermore, Anago may negotiate contracts with third parties, stipulating that only their products and services are offered within the Anago system. If Anago notifies the franchisee of such a contract, the franchisee must offer only the specified third party's products or services and avoid offering competitive products or services to clients. Anago also distinguishes between regular client accounts and "National Accounts," which involve clients with multiple locations. If Anago secures a contract with a National Account in the franchisee's area, Anago may offer the franchisee the option to service locations within their area on a non-exclusive basis, subject to terms and conditions specified by Anago.