For Anago, what deductions are made from the Client Receipts before distribution to the Subfranchisor?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
checks and payments shall be made payable in the name of the Anago Escrow Account, and Subfranchisor must deposit all client checks and payments received into such account on a daily basis.
- (c) Distribution of Client Receipts. 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). Subfranchisor will be responsible for the payment of sales tax, as applicable, which payments will be made from Subfranchisor's operating account.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, after a Subfranchisor deposits a client payment into the Anago Escrow Account, Anago will distribute client receipts weekly, less specific deductions. These deductions include any funds the Subfranchisor owes to Anago or its affiliates.
The specific deductions from the client receipts include royalties, administrative support fees, insurance fees, accounting fees, service fees (such as bank fees and credit card fees), advertising fees, late fees, temporary management fees, interest, and any other payments due to Anago or its affiliates. Additionally, Anago will hold back a portion of the funds in the Anago Escrow Account to cover amounts the Subfranchisor owes under the agreement.
Furthermore, by or about the 26th of each month, Anago will distribute to the Subfranchisor any amounts not previously distributed as part of the weekly distributions. These distributions are based on gross revenues received during the previous month, less any royalty fees, fund contributions, and any other payments owed to Anago that accrued during the previous calendar month. Anago will also deduct a holdback amount to satisfy the minimum account balance required to maintain the Anago Escrow Account. This comprehensive list of potential deductions highlights the importance of understanding all financial obligations to Anago as a Subfranchisor.