Under what conditions might Anago require a franchisee to modify or discontinue the use of a Proprietary Mark?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
If we deem it advisable, in our sole discretion, to modify or discontinue the use of any Proprietary Mark and/or use one or more additional or substitute names or marks, including due to the rejection of any pending registration or revocation or cancellation of any existing registration of any of our Proprietary Marks or the rights of senior users, you are obligated to do so at your sole expense within 30 days of our request and will cause your Unit Franchisees to do so as well.
Source: Item 13 — TRADEMARKS (FDD pages 38–41)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago has the discretion to require franchisees to modify or discontinue the use of any Proprietary Mark. This decision can be made if Anago deems it advisable, which includes situations such as the rejection of a pending registration, the revocation or cancellation of an existing registration, or the rights of senior users of the mark.
If Anago decides to modify or discontinue a Proprietary Mark, franchisees are obligated to comply with this decision at their own expense. This includes ensuring that their own unit franchisees also adhere to the change. Franchisees are given 30 days from Anago's request to implement these changes.
This clause in the franchise agreement places the responsibility and cost of trademark-related issues squarely on the franchisee. While Anago offers indemnification against damages from lawsuits, the franchisee bears the financial burden of rebranding or changing marks if Anago deems it necessary. This could involve updating signage, marketing materials, and other branded items, potentially leading to significant unexpected expenses for the franchisee.