Can Anago designate a supplier where a franchisee may buy supplies and charge them to the House Account?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
We may designate a supplier where a Franchisee may go and buy supplies and charge the supplies to the House Account.
If you use the House Account to purchase supplies and elect to have your purchases deducted from your statement each month, we will charge you a financing fee of 5.25% of the amount charged.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago may designate a specific supplier from which franchisees can purchase supplies and charge those purchases to a House Account. If a franchisee chooses to use the House Account for supply purchases and opts to have these expenses deducted from their monthly statement, Anago will levy a financing fee. This fee is calculated as 5.25% of the total amount charged to the House Account.
This arrangement provides a convenient option for franchisees to manage their supply procurement and payments. However, the 5.25% financing fee is an important consideration. Franchisees should evaluate whether the convenience of using the House Account and having purchases deducted monthly outweighs the cost of the financing fee. It's crucial to compare this cost against other potential financing options or the benefits of paying for supplies upfront.
Anago also retains the right to approve or disapprove suppliers. If a franchisee wishes to source supplies from a supplier not already approved by Anago, they must submit a written request for approval. Anago may then inspect the supplier's facilities and require samples for testing, with the franchisee bearing the costs of inspection and testing. This process ensures that all suppliers meet Anago's standards and specifications, maintaining consistency within the franchise system. Anago can also concentrate purchases with one or more suppliers to obtain the lowest prices and/or the best advertising support and/or services for any group of Franchised Units or Company Units within the System.
Overall, while Anago offers the convenience of a House Account for supply purchases, franchisees need to carefully consider the associated financing fees and the process for supplier approval. Understanding these aspects is essential for making informed decisions about supply procurement and financial management within their Anago franchise.