To whose benefit does the goodwill established by an Anago franchisee's use of the Proprietary Property inure?

According to Anago's 2025 Franchise Disclosure Document, any goodwill established by a franchisee through the use of Anago's Proprietary Property inures to the exclusive benefit of Anago. The Proprietary Property includes Proprietary Marks, Confidential Information, and copyrighted information that the franchisee is entitled to use under the Subfranchise Rights Agreement. The agreement does not grant the franchisee any goodwill or other interest in the Proprietary Property beyond the right to operate an Anago Subfranchise Rights Business within their designated area, provided they comply with the Subfranchise Rights Agreement.

This means that while franchisees may build a successful business and enhance the reputation of the Anago brand through their efforts, the ultimate value of that enhanced brand recognition belongs to Anago. The franchisee's rights are limited to operating the franchise according to the agreement's terms. This is a common arrangement in franchising, as it allows the franchisor to maintain control over the brand and ensure consistency across all franchise locations.

For a prospective Anago franchisee, this underscores the importance of understanding that they are building value for the Anago brand, not for themselves as independent owners of the brand. While they can profit from operating the franchise, they will not own the goodwill associated with the Anago name. This is a crucial consideration when evaluating the long-term potential and resale value of the franchise.