Can Anago change the payment procedures for fees owed by the Subfranchisor?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h) All payments required under Section 4.2 shall be paid to Franchisor in the manner and in accordance with the procedures designated by Franchisor, which are subject to change upon written notice to Subfranchisor.
Without limiting the generality of the foregoing, Franchisor has the right to require Subfranchisor, upon written notice, to pay all fees required to be paid to Franchisor under this Agreement directly to Franchisor via electronic funds transfer ("EFT").
Subfranchisor must complete and deliver to Franchisor such forms as may from time to time be required to effectuate any changes necessary to accommodate any revised payment requirements, including any and all forms required by Subfranchisor's bank necessary to set up EFT.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago has the right to modify the payment procedures for fees owed by the Subfranchisor. Specifically, all payments required under Section 4.2 of the agreement must be paid to Anago in the manner and according to the procedures designated by Anago, and these procedures are subject to change. Anago must provide written notice to the Subfranchisor regarding any changes to the payment procedures.
Anago can require the Subfranchisor to pay all fees directly to Anago via electronic funds transfer (EFT) with written notice. The Subfranchisor is obligated to complete and deliver any forms required to implement changes to payment requirements, including forms required by the Subfranchisor's bank to set up EFT.
This provision gives Anago considerable flexibility in managing how it receives payments from Subfranchisors. For a prospective Subfranchisor, this means they must be prepared to adapt to changes in payment methods, potentially including setting up electronic funds transfer and covering any associated bank fees. It is important for the Subfranchisor to maintain open communication with Anago to stay informed of any changes to payment procedures and to ensure timely compliance to avoid any penalties or disruptions.