Is the Anago advertising fund considered an asset of the Franchisor?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
mon benefit of the Anago franchise System. 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. The Fund will not be Franchisor's asset. The Fund is not a trust. If established, Subfranchisor's 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 the sole discretion of Franchisor. Franchisor does not owe any fiduciary obligation to Subfranchisor or Unit Franchisees for administering the Fund or any other reason. Franchisor undertakes no obligation to make expenditures for Subfranchisor or any individual Unit Franchisee which are equivalent or proportionate to contributions paid under this Agreement, or to insure that Subfranchisor or any unit Franchisee benefits directly or on a pro-rata basis from activities of the Fund, if any. Franchisor has the right to include a notation on all advertisements stating the availability of franchise and/or career opportunities.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the advertising fund is not considered an asset of the Franchisor. Anago has the right to establish national and/or regional advertising funds for the common benefit of the Anago franchise system. If a fund is established, Anago may require subfranchisees to contribute a monthly amount not to exceed 2.2% of the subfranchisee's gross revenues during the preceding month.
The funds are 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 the sole discretion of Anago.
Anago does not owe any fiduciary obligation to Subfranchisor or Unit Franchisees for administering the Fund or any other reason. Anago undertakes no obligation to make expenditures for Subfranchisor or any individual Unit Franchisee which are equivalent or proportionate to contributions paid under this Agreement, or to insure that Subfranchisor or any unit Franchisee benefits directly or on a pro-rata basis from activities of the Fund, if any. A statement of operations of the Fund, if developed, will be prepared annually by an independent public accountant selected by Anago. Upon reasonable request, Anago will provide Subfranchisor a copy of the annual statement of operations.