What deductions are made from the Subfranchisor's weekly distributions by Anago during the monthly reconciliation?

According to Anago's 2025 Franchise Disclosure Document, the monthly reconciliation process involves Anago calculating the Subfranchisor's monthly Gross Revenues based on client payments deposited into the Anago Escrow Account during the previous calendar month. Following this calculation, Anago distributes 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.

However, these distributions are subject to certain deductions. Anago deducts any Royalty Fees, Fund contributions, and any other payments owed to Anago which accrued during the previous calendar month. Additionally, Anago deducts a holdback amount to satisfy the minimum account balance required to maintain the Anago Escrow Account.

In practical terms, this means that a Subfranchisor's actual take-home pay each month will be less than the total gross revenues due to these deductions. It is important for prospective Subfranchisors to carefully review and understand all the fees and deductions outlined in the Franchise Agreement to accurately forecast their potential earnings and manage their cash flow effectively.