Are Anago franchisee contributions to the Advertising Fund used for the franchisor's general operating expenses?

According to Anago's 2025 Franchise Disclosure Document, franchisee contributions to the advertising fund are generally not used for the franchisor's general operating expenses. Specifically, all sums that a franchisee contributes to the Fund will be accounted for separately from Anago's other funds and will not be used for any of Anago's general operating expenses. However, Anago may use the advertising contributions to pay for the costs, expenses, and overhead incurred by Anago in activities related to the direction, implementation, and administration of the Fund, including costs of personnel for creating and implementing advertising, merchandising, promotional, and marketing programs.

This means that while Anago cannot use the advertising fund for its overall business operations, it can use the funds to cover expenses directly related to managing and executing the advertising and marketing efforts. This includes personnel costs associated with creating and implementing advertising campaigns.

This distinction is important for prospective franchisees because it clarifies how their advertising contributions will be used. While the funds are not meant to cover Anago's general overhead, they can be used for the franchisor's costs associated with running the advertising fund itself. This is a fairly standard practice in franchising, as it allows the franchisor to manage the advertising fund effectively while ensuring that the bulk of the money is spent on actual advertising and marketing activities.