Can the Anago Advertising Fund be used to provide rebates or reimbursements to franchisees?

According to Anago's 2025 Franchise Disclosure Document, the Advertising Fund may be used to provide rebates or reimbursements to franchisees. Specifically, the fund can cover local expenditures on products, services, or improvements that Anago or AFI (presumably Anago Franchising, Inc.) approve in advance. These expenditures must promote general public awareness and support for the Anago franchise system.

This means that as an Anago franchisee, you might be eligible to receive money back for certain local advertising or marketing efforts. However, this is not guaranteed. Anago or AFI must pre-approve the expenditures, and they must align with the goal of enhancing the overall image of the franchise system. This provision gives Anago some control over how franchisees market their businesses locally, ensuring brand consistency and preventing misuse of advertising funds.

It's important to note that Anago does not have a fiduciary obligation to franchisees in administering the Advertising Fund. This means Anago has broad discretion in how the fund is used, and franchisees do not have a legal claim to specific expenditures or proportional benefits. Franchisees should seek clarification from Anago regarding the specific criteria and process for obtaining rebates or reimbursements from the Advertising Fund to fully understand the possibilities and limitations.