How is the advertising contribution payable for an Anago franchise?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Fund is established, Franchisor may require Subfranchisor to contribute a monthly amount not to exceed 2.2% of Subfranchisor's Gross Revenues during the preceding month to the Fund.
A statement of operations of the Fund, if developed, will be prepared annually by an independent public accountant selected by Franchisor.
Upon reasonable request, Franchisor will provide Subfranchisor a copy of the annual statement of operations.
You have agreed to retain Us as Your agent to directly invoice the Accounts that are assigned to You or with respect to which You sign a joinder, and You will forward to Us amounts We are due from Client payments sent or given directly to You. We will invoice the Accounts monthly for the cost of services and supplies You render under the contract with the Account. We will invoice the Accounts we assign to You and maintain those revenue Records for You. You hereby authorize and direct Us to withhold, on Your behalf, any Money due You from servicing the Accounts We assign to You for Royalty Fees, Administration Fees, Advertising Contributions, C-Fees, Note Payments and all other amounts You owe to Us or Our Affiliates and out-of-pocket costs (including attorneys' fees and court costs) We incur in enforcing payment of Accounts on Your behalf. On or before the 20th day but no later than the 25th day of each month following the month in which services were rendered, We will mail to You all monies collected as recorded in the "Due Owner" column of the Owners Report (monthly statement), less monies due Us in accordance with this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if Anago establishes an advertising fund, Subfranchisors may be required to contribute a monthly amount not exceeding 2.2% of their Gross Revenues from the preceding month. These funds are intended for advertising, marketing, promotion, and public relations activities to benefit the Anago franchise system. The content and selection of media for these activities are at Anago's discretion.
Anago does not guarantee that expenditures will be equivalent or proportionate to individual contributions, nor that franchisees will directly benefit from the fund's activities. Anago may include franchise availability notices in advertisements. An independent accountant will prepare an annual statement of operations for the fund, and a copy will be provided to the Subfranchisor upon request.
Furthermore, Anago withholds money due from servicing accounts for advertising contributions. Anago will invoice accounts monthly for services and supplies rendered. On or before the 20th day but no later than the 25th day of each month following the month in which services were rendered, Anago will mail all monies collected, less monies due to Anago, according to the Owners Report.