What banking requirements must an Anago franchisee fulfill?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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]". All Client checks and payments shall be made payable in the name of the Anago Escrow Account, and Subfranchisor must deposit all client checks and payments received into such account on a daily basis.
- (c) Distribution of Client Receipts. After Subfranchisor receives a Client payment and deposits that payment into the designated Anago Escrow Account, Franchisor will: (i) distribute to Subfranchisor once per week, on Wednesday, the Client Receipts deposited into the Anago Escrow Account during the prior week (with a week running from Sunday through Saturday) which have cleared, less any funds owed to Franchisor or its affiliates for Royalties, Administrative Support fees, Insurance fees, accounting fees, service fees (bank fees, credit card fees, or other fees relating to billing and collections), advertising fees, late fees, temporary management fees, interest, and any other payments due to Franchisor its affiliates hereunder; and (ii) Franchisor will hold back in the Anago Escrow Account a portion of the funds sufficient to cover amounts Subfranchisor owes to it under this Agreement, as described in subsection (i). Subfranchisor will be responsible for the payment of sales tax, as applicable, which payments will be made from Subfranchisor's operating account. Subfranchisor is solely responsible for payment to its Unit Franchisees for services rendered to Clients, which payments should be made on the 20th day of each month following the month in which services were rendered, or as otherwise prescribed in its Unit Franchise Agreement, as authorized by Franchisor, and Subfranchisor will provide its Unit Franchisees with a statement detailing the previous month's accounting activity. Subfranchisor will send to Franchisor daily, by facsimile or electronic mail, items for all invoicing activity to each Client serviced and all supplies and equipment sold by Subfranchisor's Unit Franchisees for that day (for at least the first 12 months). Subfranchisor will provide to Franchisor, by the 25th day of each month, a copy of all statements issued to its Unit Franchisees during the month in the form and manner designated by Franchisor. Franchisor at its option, will require Subfranchisor to accomplish this via hard copies sent by mail, courier, or by electronic data transmission via a modem or Internet access installed within Subfranchisor's computer.
- (d) Unintentional Payments.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a subfranchisor must establish a separate operating account under their corporate name, doing business as "Anago of [Insert Area]". All client payments must be made payable to the Anago Escrow Account, and the subfranchisor is required to deposit all client checks and payments into this account daily.
Anago will calculate the subfranchisor's monthly gross revenues based on client payments deposited into the Anago Escrow Account during the previous month. Anago then distributes amounts not previously distributed as part of weekly distributions, less royalty fees, fund contributions, other payments owed, and a holdback amount to maintain the minimum balance in the Anago Escrow Account. The subfranchisor is responsible for sales tax payments, which are made from their operating account. They are also responsible for paying their unit franchisees for services rendered to clients.
Furthermore, Anago has the right to require subfranchisors to pay all fees via electronic funds transfer (EFT) with written notice. The subfranchisor must complete and deliver any forms required to effectuate changes necessary to accommodate revised payment requirements, including forms required by their bank to set up EFT. Failure to properly deposit client receipts into the required bank accounts results in a fee of $100 per day.