How will Anago deduct the payment option fee from the franchisee?

According to Anago's 2025 Franchise Disclosure Document, Anago may arrange with vendors to collect costs and expenses associated with products and services they provide to the subfranchisor and, in turn, pay the vendor on the subfranchisor's behalf for such products or services. If Anago chooses to do so, the subfranchisor agrees that Anago or its designated affiliates may auto debit the subfranchisor's escrow account for such amounts in the same manner and using the same authorization that the subfranchisor grants Anago with respect to payment of Royalty and other fees.

This means that Anago has the option to manage payments to vendors for the subfranchisor. If Anago exercises this option, they can automatically deduct these payments from the subfranchisor's escrow account. This process will use the same authorization the subfranchisor provides for royalty and other fee payments, streamlining the payment process.

This arrangement benefits Anago by ensuring vendors are paid promptly and efficiently. For the subfranchisor, it simplifies vendor payments but requires careful monitoring of the escrow account to ensure accuracy and prevent overdrafts. Subfranchisors should clarify with Anago which specific products and services will be subject to this auto-debit arrangement and establish clear communication channels to address any discrepancies or concerns.