Upon default, termination, or expiration of the agreement, who owns the rights to all Clients and Client Accounts of Anago?

According to Anago's 2025 Franchise Disclosure Document, Anago retains ownership of all rights to Clients and Client Accounts upon the default, termination, or expiration of the Subfranchise Agreement. This means that when the agreement ends, regardless of the reason, the client relationships and accounts established during the franchise operation revert back to Anago.

This provision has significant implications for prospective Anago subfranchisees. Upon termination, Anago takes control of the client base that the subfranchisee has built. The subfranchisee must deliver all client lists and related documentation to Anago and will no longer have any rights to those clients. This transfer occurs whether the termination is due to a failure to meet the agreement terms or simply the expiration of the agreement.

This arrangement is not uncommon in franchising, as it allows Anago to maintain consistency and control over its brand and customer relationships. However, it underscores the importance of adhering to the franchise agreement and building a sustainable business that can operate successfully within the franchisor's guidelines. Subfranchisees should be aware that the value they build in their client relationships ultimately benefits Anago upon the agreement's conclusion.

It is important to note that this clause pertains specifically to the subfranchise agreement. The FDD excerpt does not specify the ownership of client accounts for unit franchisees. A prospective franchisee should clarify with Anago the specific terms governing client ownership upon termination or expiration of a Unit Franchise Agreement.