Does Anago have a fiduciary obligation to Subfranchisors or Unit Franchisees for administering the advertising fund?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor does not owe any fiduciary obligation to Subfranchisor or Unit Franchisees for administering the Fund or any other reason.
Franchisor undertakes no obligation to make expenditures for Subfranchisor or any individual Unit Franchisee which are equivalent or proportionate to contributions paid under this Agreement, or to insure that Subfranchisor or any unit Franchisee benefits directly or on a pro-rata basis from activities of the Fund, if any.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago does not owe any fiduciary obligation to Subfranchisors or Unit Franchisees for administering the advertising fund. This means that Anago is not legally bound to act in the best interests of its Subfranchisors or Unit Franchisees when managing the advertising fund.
Anago has the right to establish national and/or regional advertising funds for the common benefit of the Anago franchise system. If a fund is established, Subfranchisors may be required to contribute a monthly amount not to exceed 2.2% of their gross revenues. These funds are to be used for advertising, marketing, promotion, public relations, and other activities designed to enhance the Anago franchise system's public reputation.
The content of all advertising activities, including the media selected and the target audience, is at the sole discretion of Anago. Anago is not obligated to ensure that Subfranchisors or Unit Franchisees benefit directly or proportionally from the advertising fund's activities. A statement of operations of the fund, if developed, will be prepared annually by an independent public accountant selected by Anago, and a copy will be provided to the Subfranchisor upon reasonable request.