Can an Anago franchisee directly invoice assigned accounts for services outside the contract?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
You are not permitted to perform or invoice for janitorial or other services offered through Your Unit Franchise directly to those Accounts or to perform or invoice the Account for such services outside of the contract. You may however solicit and negotiate additional business with Clients assigned to You. All such additional business must be reflected on an amendment to the contract with the Account and will be subject to the provisions of the assignment of the contract, including Our appointment as Your agent for billing and collections related to the additional business. We will invoice for those services retaining Our fees earned under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, franchisees are generally not permitted to directly invoice assigned accounts for services outside the scope of the original contract. Anago manages the billing and collections for services provided under the initial contract. This means that all payments from clients are sent directly to Anago, who then distributes the revenues to the franchisee after deducting fees and other liabilities.
However, the Anago franchisee is allowed to solicit and negotiate additional business with clients to whom they are assigned. Any additional business that is secured must be documented as an amendment to the existing contract with the client. This amendment is then subject to the same provisions as the original contract, including Anago acting as the franchisee's agent for billing and collections. Anago will invoice for these additional services and retain their fees as outlined in the agreement.
This system ensures that Anago maintains control over the billing process and can accurately track revenues and fees. It also means that franchisees must rely on Anago to handle invoicing and collections, even for additional services they provide. While franchisees can pursue additional business, they must adhere to the established billing procedures and cannot directly bill clients for these services. This requirement is in place to maintain consistent record-keeping and ensure that all payments are properly accounted for, with a Handling Fee of $100 per payment if the franchisee fails to forward any funds received to the Anago office.