Upon expiration or termination of the Anago subfranchise agreement, is any monetary amount assigned to the subfranchisor attributable to goodwill associated with their use of the Proprietary Marks?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Subfranchisor's use of the Proprietary Marks pursuant to this Agreement does not give Subfranchisor any ownership interest or other interest in or to the Proprietary Marks, except the license granted by this Agreement. Any and all goodwill arising from Subfranchisor's use of the Proprietary Marks shall inure solely and exclusively to Franchisor's and/or its Affiliates' benefit, and upon expiration or termination of this Agreement, no monetary amount shall be assigned as attributable to any goodwill associated with Subfranchisor's use of the System or the Proprietary Marks.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the subfranchisor will not receive any monetary amount for goodwill upon expiration or termination of the agreement. The FDD specifies that any goodwill arising from the subfranchisor's use of Anago's Proprietary Marks inures solely and exclusively to the benefit of Anago.
This means that when the subfranchise agreement ends, the subfranchisor will not be compensated for any value they may have built in the Anago brand within their territory. This is a standard practice in franchising, as the brand and its associated goodwill are considered the property of the franchisor.
For a prospective Anago subfranchisee, this highlights the importance of understanding that the value they build through their efforts primarily benefits the franchisor. While the subfranchisee can profit during the term of the agreement, they should not expect to receive any payment for goodwill when the agreement expires or is terminated.