What is an Anago franchisee required to do with client payments sent directly to them?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisor. Franchisor at its option, will require Subfranchisor to accomplish this via hard copies sent by mail, courier, or by electronic data transmission via a modem or Internet access installed within Subfranchisor's computer.
- (d) Unintentional Payments. If any client payments are sent directly from the client to Subfranchisor's or a Unit Franchisee's operating Account, Subfranchisor will immediately notify
Franchisor of the payment receipt with the corresponding deposit slip. Subfranchisor or Unit Franchisee, as applicable, will deposit the payment directly to the Anago Escrow Account for processing. Neither Subfranchisor nor any Unit Franchisee may deposit the payment directly into its own account. A deposit into any account other than the Anago Escrow Account is a default under this Agreement authorizing Franchisor to immediately assume all billing and invoicing, in which event all Clients in the Area will be notified to forward all invoice payments directly to Franchisor.
- (e) Right of Entry to Billing Records.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if a client sends payments directly to a Subfranchisor's or Unit Franchisee's operating account, the Subfranchisor must immediately notify Anago of the payment receipt and provide the corresponding deposit slip. The Subfranchisor or Unit Franchisee must then deposit the payment directly into the Anago Escrow Account for processing. They are explicitly prohibited from depositing the payment into their own account.
Depositing client payments into any account other than the Anago Escrow Account constitutes a default under the agreement. This gives Anago the right to immediately take over all billing and invoicing, and all clients in the area will be notified to send all invoice payments directly to Anago. This measure ensures that Anago maintains control over the billing and collection process and can accurately track revenues for royalty and fee calculations.
For Unit Franchisees, client payments sent directly to them must be forwarded to the Anago Regional Office for processing. Failure to forward these payments will result in a Handling Fee of $100 per payment. This policy is in place to ensure that Anago can maintain accurate and timely records of amounts due to the Unit Franchisee and to cover the additional expenses incurred due to the failure to remit payments correctly. This highlights the importance of adhering to Anago's prescribed billing and collection procedures to avoid penalties and maintain good standing with the franchisor.