Upon termination of the Anago Subfranchise Agreement, will the subfranchisor be assigned any monetary amount attributable to goodwill associated with their use of the System or 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, a subfranchisor will not receive any monetary amount attributable to goodwill associated with their use of the Anago system or proprietary marks upon termination or expiration of the Subfranchise Agreement. Anago Cleaning Systems, Inc. owns the rights to the Proprietary Marks and the goodwill associated with these marks.
The agreement specifies that the subfranchisor's use of the Proprietary Marks does not grant them any ownership or interest in the marks, except for the license provided by the agreement. All goodwill that arises from the subfranchisor's use of the Proprietary Marks benefits Anago.
This means that when the Subfranchise Agreement ends, the subfranchisor will not be compensated for any value they may have added to the Anago brand through their business operations. This is a standard practice in franchising, as the brand and its associated goodwill typically remain the property of the franchisor.