Can I use the Proprietary Property as security for any obligation or indebtedness related to my Anago franchise?

According to Anago's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from using the Proprietary Property as security for any obligation or indebtedness. The Proprietary Property, as defined in the FDD, includes Anago's Proprietary Marks, Confidential Information, and copyrighted information that the franchisee is entitled to use under the franchise agreement. This restriction is in place to protect Anago's brand and intellectual property.

This restriction means that franchisees cannot leverage Anago's trademarks, logos, or other proprietary assets to secure loans or other financial obligations. This is a fairly standard clause in franchise agreements, as franchisors want to maintain strict control over their brand and prevent its encumbrance by individual franchisees' debts. Allowing franchisees to use the Proprietary Property as collateral could potentially jeopardize the brand if a franchisee defaults and the lender attempts to seize those assets.

For a prospective Anago franchisee, this means that they will need to secure financing and manage their business operations without relying on the brand's intellectual property as collateral. This may require franchisees to seek alternative forms of security, such as personal assets or other business assets that are not considered Proprietary Property. Franchisees should carefully consider this restriction when planning their financing strategy and ensure they have sufficient resources to meet their financial obligations without violating the terms of the franchise agreement.

Anago's right to modify or discontinue the use of any of the Proprietary Marks and/or use 1 or more additional or substitute names or marks, including due to the rejection of any pending registration or revocation of any existing registration of any of the Proprietary Marks, or due to the rights of senior users, You are obligated to do so at Your sole expense within 30 days of Our request.