On what day of the week does Anago Franchisor distribute Client Receipts to the Subfranchisor?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the franchisor distributes client receipts to the subfranchisor once per week, specifically on Wednesdays. This distribution includes client receipts deposited into the Anago Escrow Account during the prior week, with the week running from Sunday through Saturday.
However, the amount distributed is not the total client receipts. Anago deducts any funds owed to them or their affiliates. These deductions cover a range of fees, including royalties, administrative support, insurance, accounting, service fees (such as bank or credit card fees), advertising, late fees, temporary management fees, and interest. Additionally, Anago holds back a portion of the funds to cover any amounts the subfranchisor owes under their agreement.
This weekly distribution schedule and the deductions taken by Anago have significant implications for the subfranchisor's cash flow. The subfranchisor needs to manage their finances carefully, ensuring they have sufficient funds to cover their own obligations, including payments to Unit Franchisees and sales tax. The FDD specifies that subfranchisors are responsible for paying sales tax from their operating account and compensating Unit Franchisees for services rendered to clients, typically around the 20th of each month following the service month.