What are Advertising Contributions used for by Anago?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
sing cooperatives (hereinafter collectively referred to as the "Fund") for the common benefit of the Anago franchise System. If a Fund is established, we may require you to contribute a monthly amount not to exceed 2.2% of your Gross Revenues during the preceding month to the Fund. If established, your payments to the Fund shall be used for advertising, marketing, promotion, production and development of advertising, marketing, promotional and other programs, product development, merchandising, public relations, administrative expenses, programs designed to increase business and enhance and further the public reputation of the Anago franchise System, and activities related to any or all of the foregoing. The content of all activities of the Fund, including, without limitation, the media selected and employed, as well as the area and units to be targeted for such activities shall be at our sole discretion. We undertake no obligation to make expenditures for you or any individual Unit Franchisee which are equivalent or proportionate to contributions paid to the Fund, or to insure that you or any Unit Franchisee benefits directly or on a pro-rata basis from activities of the Fund, if any. We have the right to include a notation on all advertisements stating the availability of franchise and/or career opportunities. The Fund is not an asset of AFI. AFI does not owe any fiduciary obligation to Subfranchisors or Unit Franchisees for administering the Fund or any other reason. The Fund is not required to be audited. However, a statement of operations of the Fund, if developed, will be prepared annually by an independent public accountant selected by us. Upon reasonable request, we will provide you a copy of the annual statement of operations. Payments to the Fund may be utilized to provide for the administrative expenses of the Fund, including, without limitation, salaries, travel, rent and other expenses of administering the Fund, and for programs designed to increase sales and enhance and further develop the public reputation and image of Anago and the Anago franchise System. The balance, including any interest earned by the Fund, will be used for advertising and related expenses.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if a national or regional advertising fund is established, franchisee contributions, up to 2.2% of gross revenues, will be used for a variety of advertising, marketing, and promotional activities. These activities include the production and development of advertising, marketing, and promotional programs, as well as product development, merchandising, and public relations. Funds may also cover administrative expenses and programs designed to increase business and enhance the public reputation of the Anago franchise system. These activities aim to boost sales and improve the brand's image. Anago retains sole discretion over the content, media, and targeting of these advertising activities.
Anago does not guarantee that expenditures will be equivalent or proportionate to individual franchisee contributions, nor that franchisees will directly benefit on a pro-rata basis from fund activities. Anago also has the right to include notations about franchise or career opportunities in all advertisements. The advertising fund is not considered an asset of Anago Franchising, Inc. (AFI), and AFI does not have a fiduciary obligation to subfranchisors or unit franchisees in administering the fund. The fund is not required to be audited; however, an annual statement of operations, if developed, will be prepared by an independent public accountant selected by Anago. Franchisees can request a copy of this annual statement.
Payments to the advertising fund may cover administrative expenses such as salaries, travel, and rent, as well as programs designed to increase sales and enhance the public image of Anago. Any remaining balance, including interest earned, will be used for advertising and related expenses. Contributions not spent in the fiscal year are typically carried forward to the next year for advertising purposes. As of the FDD's issuance date, there is no advertising fund in effect, but Anago retains the right to establish one in the future. If a fund is developed, businesses owned by Anago and its affiliates will also be required to contribute.