Under the Anago Subfranchise Rights Agreement, what geographic area will I be granted the right to operate my Subfranchise in?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 12 - TERRITORY
Under your Anago Subfranchise Rights Agreement, you will be licensed and granted the right to operate your Subfranchise in those counties as defined in the Anago Subfranchise Rights Agreement (the "Area") during the term of the Subfranchise Rights Agreement so long as you are not in default of the agreement. The area granted will include a population delineated by the boundaries of a standard, statistical metropolitan area, sufficient to encompass the specified
population (with a minimum population of 500,000), in accordance with the Subfranchise Program purchased. You and we will agree on the defined Area prior to signing the Anago Subfranchise Rights Agreement. However, if you fail to schedule the minimum number of Client Bids that we require then, in addition to our other rights under the Subfranchise Rights Agreement, we may reduce or redefine the Area upon notice to you.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, except as described below and provided you are in compliance with your obligations under your Subfranchise Rights Agreement, we will not, during the Term of your Subfranchise Rights Agreement, grant any other person the right to act as our subfranchisor in the Area.
Reservation of Rights
You are not granted any options, rights of first refusal or similar rights to acquire additional development rights or franchises for additional territories, and will not be permitted to relocate your Anago Subfranchise Rights Business.
You receive only those rights that we expressly grant to you in the Subfranchise Rights Agreement. You acquire no rights by inference, innuendo or extrapolation. We expressly reserve, for ourselves and our affiliates, without compensation to you of any sort, (a) the right to engage in any activities, anywhere in the world, unless we expressly agree in the Subfranchise Rights Agreement that we or our affiliates will not engage in them, and (b) all rights not expressly granted to you under the Subfranchise Rights Agreement, including, without limitation, the right to (i) develop and operate, directly or indirectly, other businesses offering products and services, whether similar or not to the products or services offered by the Unit Franchises, under different marks within or outside the Area; (ii) offer and sell products and services that are the same as or substantially similar to those offered by Unit Franchisees under the Proprietary Marks through our website and otherwise via the Internet, through catalogs and direct mail solicitations and other alternative methods of distribution within or outside the Area; (iii) advertise and promote the System and Proprietary Marks wherever we deem appropriate; (iv) operate and grant other persons the right to operate retail businesses identified by the Proprietary Marks that offer and sell janitorial services and products to Clients outside the Area; and (v) bid on and enter into contracts with National Accounts.
Restrictions on Solicitations
You are not permitted to solicit Unit Franchisees or clients outside your Area, including through other channels of distribution such as the Internet, catalogs, telemarketing or other direct marketing.
Source: Item 12 — TERRITORY (FDD pages 36–38)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, as a subfranchisee, you will be granted the right to operate in specific counties defined in the Anago Subfranchise Rights Agreement. This designated area will include a population within the boundaries of a standard, statistical metropolitan area, with a minimum population of 500,000, based on the Subfranchise Program you purchase. The specific area will be agreed upon by you and Anago before signing the Subfranchise Rights Agreement. However, this territory is not exclusive, meaning you may face competition from other franchisees, company-owned outlets, or other channels of distribution.
Anago retains significant rights, including the ability to engage in any activities anywhere in the world unless expressly restricted in the Subfranchise Rights Agreement. They can also develop other businesses, offer similar products/services through various channels (like the internet or catalogs), and bid on contracts with National Accounts. A "National Account" is defined as a client with ten or more locations in your area, multiple locations inside and outside your area, or any client for which Anago chooses to submit a proposal.
Furthermore, you are restricted from soliciting unit franchisees or clients outside your designated area. If Anago secures a contract with a National Account that has locations within your territory, they may offer you the option to license Unit Franchisees to service those locations, but this would be on a nonexclusive basis and under terms and conditions set by Anago. Anago may reduce or redefine your Area if you fail to schedule the minimum number of Client Bids that they require.
In summary, while you are granted a specific territory with a minimum population, it is not exclusive, and Anago retains considerable control over National Accounts and other business activities that could impact your operations. Prospective franchisees should carefully consider these factors and discuss any concerns with Anago before entering into a Subfranchise Rights Agreement.