What costs and expenses are covered by the Anago Advertising Fund?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
nd will be maintained and administered by Us, AFI, or Our Designee as follows:
- (a) The Fund is intended to maximize general public recognition and acceptance of the Anago trademarks and System for the benefit of all Franchisees within the System, and neither We, nor AFI is obligated to make expenditures for You which are equivalent or proportionate to Your contribution or to ensure that You benefit directly or pro-rata from the placement of advertising or marketing.
- (b) The Fund, all contributions to the Fund, and any earnings by the Fund, are used exclusively to meet the costs and expenses of maintaining, administering, directing, conducting and preparing advertising, marketing, public relations or promotional programs and materials, and any other activities which We and/or AFI believes will enhance the image of the System, including the costs of preparing and conducting media advertising campaigns; direct mail advertising; marketing surveys and other public relations activities; employing advertising and/or public relations agencies; purchasing promotional items, conducting and administering visual merchandising, promotions and merchandising programs; and providing promotional and other marketing materials and services. Advertising may be regional or national, in the following types of media: print, internet, radio or television. The Fund may also be used to provide rebates or reimbursements to You for local expenditures on products, services or improvements, approved in advance by Us or AFI, which We or AFI believe promote general public awareness and favorable support for the franchise System.
- (c) All sums that You contribute to the Fund will be accounted for separately from Our other funds and will not be used for any of Our general operating expenses.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Advertising Fund is used to cover various costs and expenses related to advertising, marketing, and promoting the Anago franchise system. These expenses include maintaining, administering, directing, and preparing advertising, marketing, public relations, and promotional programs and materials. The fund also covers any other activities that Anago believes will enhance the image of the system.
Specifically, the Anago Advertising Fund can be used for media advertising campaigns, direct mail advertising, marketing surveys, and other public relations activities. It also covers the costs of employing advertising and/or public relations agencies, purchasing promotional items, conducting and administering visual merchandising, promotions and merchandising programs, and providing promotional and other marketing materials and services. Advertising may be regional or national, and can be in various media such as print, internet, radio, or television.
Additionally, the Advertising Fund may be used to provide rebates or reimbursements to franchisees for local expenditures on products, services, or improvements that Anago approves in advance and believes will promote general public awareness and support for the franchise system. A portion of the fund can also be used for administrative expenses, including salaries, travel, and rent associated with administering the fund. Any contributions not spent in the fiscal year are typically carried forward to the next year for advertising and related expenses.
It is important to note that while Anago aims to maximize recognition and acceptance of the Anago trademarks and system, neither Anago nor its affiliates are obligated to make expenditures for a franchisee that are equivalent or proportionate to the franchisee's contribution, or to ensure that the franchisee benefits directly or pro-rata from the advertising or marketing efforts. The content and media selected for advertising are at the sole discretion of Anago.