What is the basis of accounting that Anago uses for tax reporting?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Annual Financial Statements. We may request that You prepare and submit an annual balance sheet and income statement, within 90 days of the end of the fiscal year prepared in accordance with Generally Accepted Accounting Principles. Each annual statement must be accompanied by an unqualified review opinion from an independent certified public accountant acceptable to Us, and must be signed by You or by Your Treasurer or Chief Financial Officer attesting that the financial statements are correct and fairly present Your financial position at and for the times indicated. You will also supply to Us, if requested, copies of Your federal and state income tax returns at the time these returns are filed with the appropriate tax authorities. The financial statements and/or other periodic reports described above must be prepared to segregate the income and related expenses of the Anago Unit Franchise from those of any other business that You conduct.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, franchisees may be required to submit annual financial statements. These statements, including a balance sheet and income statement, must be prepared within 90 days of the fiscal year's end and adhere to Generally Accepted Accounting Principles (GAAP).
To ensure accuracy and reliability, Anago requires that these annual statements be accompanied by an unqualified review opinion from an independent certified public accountant acceptable to them. This opinion serves as an assurance that the financial statements are presented fairly and correctly represent the franchisee's financial position. The franchisee, or their Treasurer or Chief Financial Officer, must also sign the statements, attesting to their correctness and fair presentation.
Furthermore, Anago may request copies of the franchisee's federal and state income tax returns at the time they are filed with the appropriate tax authorities. All financial statements and periodic reports must segregate the income and related expenses of the Anago Unit Franchise from those of any other business the franchisee conducts, ensuring a clear and distinct financial picture of the franchise operation.