When does Anago distribute client receipts to the Subfranchisor?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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 receives a client payment and deposits it into the designated Anago Escrow Account, Anago will distribute client receipts to the Subfranchisor once per week, specifically on Wednesdays. This distribution includes client receipts deposited into the Anago Escrow Account during the prior week, with the week running from Sunday through Saturday.
However, the amount distributed is not the full deposit. Anago deducts funds owed to it or its affiliates for various fees before distributing the client receipts to the Subfranchisor. These deductions 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, and interest, as well as any other payments due to Anago or its affiliates under the agreement.
Additionally, Anago will hold back a portion of the funds in the Anago Escrow Account to cover amounts the Subfranchisor owes to it under the agreement. This holdback ensures that Anago can cover any outstanding debts or obligations the Subfranchisor has to the company, providing a financial safeguard for Anago. The Subfranchisor is responsible for the payment of sales tax, which will be paid from the Subfranchisor's operating account.