What deductions are made from the Anago Escrow Account before payments are distributed to the Subfranchisee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
nt for any services performed by the Unit Franchisees in your Area.
- (iii) Distribution of Client Receipts. After we receive a client payment, we will distribute the payment as follows: (i) you will receive payments deposited into the Anago Escrow Account less any applicable fees owed us or our affiliates under the Subfranchise Rights Agreement, which will be paid to Subfranchisor's operating account by Franchisor once per week (based on a week from Sunday through Saturday), on Wednesday, for the prior week's cleared deposits less any Royalties, Administrative Support fees, Insurance fees, service fees (including bank charges), lease payments, late payments, late fees, interest payments, and/or any amounts due to us by you; and (ii) we will retain our portion of the funds deposited into the Anago Escrow Account as stated above. You will be responsible for the payment of sales tax, as applicable. Payments will be made from your operating account. You will pay your Unit Franchisees directly by mail on the 20th day of each month following the month in which services were rendered, or as otherwise prescribed in its Unit Franchise Agreement, as we authorize, and will provide your Unit Franchisees with a statement detailing the previous month's accounting activity. You will send to us daily, by facsimile or electronic mail, items for all invoicing activity to each Client serviced and all supplies and equipment sold by your Unit Franchisees for that day (for at least the first 6 months). You will provide to us, by the 25th day of each month, a copy of all statements issued to its Unit Franchisees during the month in the form and manner we designate.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, after Anago receives a client payment, the subfranchisee will receive payments deposited into the Anago Escrow Account less any applicable fees owed to Anago or its affiliates under the Subfranchise Rights Agreement. These fees are paid to the Subfranchisor's operating account by the Franchisor once per week (based on a week from Sunday through Saturday), on Wednesday, for the prior week's cleared deposits.
The specific deductions from the Anago Escrow Account include Royalties, Administrative Support fees, Insurance fees, service fees (including bank charges), lease payments, late payments, late fees, interest payments, and/or any amounts due to Anago by the subfranchisee. The remaining portion of the funds deposited into the Anago Escrow Account is retained by Anago.
In the event of a subfranchisee default, Anago may deposit and hold client receipts in the Anago Escrow Account, less any funds owed to Anago 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. During this default period, Anago may also charge an accounting fee of 1% of the subfranchisee's weekly Gross Revenues and a $25.00 accounting fee per Unit Franchise monthly statement, plus the cost of postage, which will be withheld from amounts due to the subfranchisee.