factual

Where can I find more details about additional deductions and adjustments to the Average Annual Sales (AAS) for Anago franchises?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

AAS does not reflect your profits or net income, because we will take deductions from your AAS. Your portion of the AAS is subject to further deductions and adjustments authorized by the Subfranchise Rights Agreement. Please refer to Item 6 for more details about additional deductions and adjustments.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 53–55)

What This Means (2025 FDD)

According to Anago's 2025 Franchise Disclosure Document, the Average Annual Sales (AAS) figure is subject to deductions and adjustments. The FDD specifies that a franchisee's portion of the AAS is subject to further deductions and adjustments as authorized by the Subfranchise Rights Agreement. To find more details regarding these deductions and adjustments, the document directs prospective franchisees to refer to Item 6 of the FDD.

Item 6 of the FDD typically covers fees that a franchisee must pay to the franchisor. In the context of AAS, this suggests that the deductions and adjustments mentioned might relate to various fees Anago charges, which are subtracted from the AAS to determine the franchisee's actual earnings or profit. These deductions could include royalties, marketing fees, or other charges outlined in the Subfranchise Rights Agreement.

It is important for potential Anago franchisees to carefully review Item 6 to fully understand what deductions and adjustments will be applied to their AAS. Understanding these deductions is crucial for accurately projecting potential income and assessing the overall profitability of the franchise. Prospective franchisees should also seek clarification from Anago regarding any unclear or ambiguous aspects of these deductions before making a final investment decision.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.