Are contributions to the Anago advertising fund used for the general operating expenses of the franchisor?

According to Anago's 2025 Franchise Disclosure Document, the advertising fund contributions are not used for the general operating expenses of the franchisor, Anago. The document specifies that all sums contributed to the Fund will be accounted for separately from Anago's other funds and will not be used for any of their general operating expenses. However, Anago may use the advertising contributions to pay for the costs, expenses, and overhead incurred by them in activities related to the direction, implementation, and administration of the Fund, including costs of personnel for creating and implementing advertising, merchandising, promotional, and marketing programs. This means that while the advertising fund cannot be used for general expenses, it can cover the costs directly related to managing and executing the advertising and marketing efforts.

This distinction is important for prospective Anago franchisees because it clarifies how their advertising fees are utilized. While a portion of the fund can cover administrative costs associated with advertising, the funds are not meant to be diverted to cover the franchisor's unrelated operational costs. This provides some assurance that the contributions are primarily focused on marketing and promotional activities intended to benefit the franchise system.

It is also stated that neither the Fund nor its earnings will belong to Anago. Separate bookkeeping accounts will be maintained for the Fund. This separation of funds and accounting practices further reinforces the dedicated nature of the advertising fund and its intended use for marketing and promotional activities. Prospective franchisees should review the annual statement of operations for the fund to ensure transparency in how the contributions are being spent.