For the Anago franchise, what criteria must a franchisee meet to be included in the average annual sales representation?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
historic representation showing the unaudited Average Annual Sales reported by certain of our direct franchisees ("Franchisees") businesses during our 2021, 2022, 2023, and 2024 fiscal years.
The information in this Item comes from current Franchisees as of December 31, 2021, December 31, 2022, December 31, 2023, and December 31, 2024, respectively. All Franchisees included in this survey have domestic territories that have been opened and continuously operated as franchised business and not corporately held for at least one full year as of the end of the calendar year for which data is reported in this Item 19. The below chart and the table following it reflect data for thirty-six (36) Franchisees representing 86% of the forty-two (42) total Franchisees in 2021, thirty-eight (38) Franchisees representing 90% of the forty-two (42) total Franchisees in 2022, forty (40) Franchisees representing 93% of the forty-three (43) total Franchisees in 2023, and forty (39) Franchisees representing 91% of the forty-three (43) total Franchisees in 2024 that meet the above criteria.
| 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|
| Average Annual Sales | $2,398,512 | $2,739,828 | $3,029,925 | $3,363,327 |
| Median Annual Sales | $1,938,635 | $2,190,135 | $2,485,498 | $3,187,641 |
| High | $6,824,947 | $7,702,075 | $8,185,855 | $8,373,146 |
| Low | $292,625 | $556,164 | $332,846 | $136,026 |
| # Within Group | 36 | 38 | 40 | 39 |
| # Above Average | 15 | 16 | 17 | 17 |
| % Above Average | 42% | 42% | 43% | 44% |
2. Average Annual Sales by Quartile during 2024
Set forth below is a historic representation showing the unaudited Average Annual Sales as self-reported by 39 Franchisees businesses during our 2024 fiscal year by quartile.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 53–55)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, to be included in the average annual sales representation, a franchisee must meet specific criteria related to their operational history. The data includes only those franchisees with domestic territories that have been open and continuously operated as franchised businesses, not corporately held, for at least one full year as of the end of the calendar year for which data is reported.
For the 2021 data, 36 out of 42 total franchisees (86%) met these criteria. In 2022, 38 out of 42 franchisees (90%) qualified. The 2023 data includes 40 out of 43 franchisees (93%), and the 2024 data includes 39 out of 43 franchisees (91%) meeting the criteria. This indicates that Anago's financial performance representations are based on a substantial portion of its franchisee network, providing a relatively comprehensive view of potential sales performance.
It is important to note that the Average Annual Sales (AAS) is calculated from the total amount billed for janitorial services, including day porter services and special services, sold by or on behalf of the franchisees, as well as revenue collected by the franchisees for the sale of Unit Franchises. However, these figures do not include prepayments for additional services, supplies, or equipment made by Unit Franchisees, which could increase actual sales. Additionally, AAS does not include federal, state, or local taxes collected on behalf of franchisees. The FDD also clarifies that AAS is not the same as "Gross Revenues," which are used to calculate certain fees payable under the Subfranchise Rights Agreement. A prospective franchisee should carefully review Item 6 of the FDD to understand the deductions and adjustments that affect their portion of the AAS.