According to the receipts section, who is the subfranchisor for Anago?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 2.4 - Billing and Collection System
(a) Invoicing. Under the Unit Franchise Agreements, each Unit Franchisee appoints Subfranchisor as its agent for purposes, throughout the term of the Unit Franchise Agreement, of billing and collecting for services the Unit Franchisee provides to its Clients. Subfranchisor hereby delegates to Franchisor the performance of those services, utilizing the NBDS System or such other program as designated by Franchisor as described in this Section 2.4. Franchisor will send monthly
invoices to every Client account serviced by Subfranchisor's Unit Franchisees for up to twelve (12) months following commencement of the Subfranchisor's operations and, at Franchisor's option, indefinitely in Franchisor's sole discretion or upon a default under this Agreement which remains uncured beyond all applicable notice and cure periods (an "Event of Default"). Should: (a) Subfranchisor not assume the invoicing after the first twelve (12) months following commencement of operations; or (b) Franchisor elect to assume invoicing upon an Event of Default, Franchisor may charge Subfranchisor the fees set forth below in Section 2.4(h).
- (b) Deposit of Client Receipts.
Unless otherwise directed by Franchisor, Subfranchisor will collect and deposit all Client payments into an escrow account designated by Franchisor, at an acceptable banking facility designated or approved in writing by Franchisor (the "Anago Escrow Account"), until the time for distribution to Subfranchisor and later distribution to its Unit Franchisees.
The Anago Escrow Account will be utilized solely for Subfranchisor's Client payments and distribution of payments to Subfranchisor, and will not be commingled with any other funds of Franchisor, or of any other of Franchisor's subfranchisors' client payments.
Subfranchisor will set up a separate operating account in its corporate name d/b/a "Anago of [Insert Area]".
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the subfranchisor's role is defined within the receipts section, particularly concerning billing and collections. Under the Unit Franchise Agreements, each Unit Franchisee appoints the Subfranchisor as its agent for billing and collecting payments from clients for services rendered. However, the Subfranchisor then delegates the performance of these services to Anago, utilizing the NBDS System or another designated program.
Anago will send monthly invoices to every Client account serviced by the Subfranchisor's Unit Franchisees for up to twelve months following the commencement of the Subfranchisor’s operations. Anago retains the option to continue invoicing indefinitely or upon the Subfranchisor's default under the agreement. If the Subfranchisor does not assume invoicing after the initial twelve months, or if Anago elects to assume invoicing due to a default, Anago may charge the Subfranchisor fees as outlined in the agreement.
The Subfranchisor is responsible for collecting and depositing all Client payments into an escrow account designated by Anago, at a banking facility approved by Anago. This Anago Escrow Account is used solely for the Subfranchisor's Client payments and the distribution of payments to the Subfranchisor and later to its Unit Franchisees. The funds in this account are not to be commingled with any other funds of Anago or any other of Anago's subfranchisors' client payments. The Subfranchisor is required to set up a separate operating account in its corporate name, doing business as "Anago of [Insert Area]".