What is the Anago franchisee's obligation regarding taxes, assessments, and liens on the collateral?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
all inspection reports, warnings, certificates and ratings, issued by any governmental entity during the Term on the conduct of the Anago Unit Franchise that indicates Your material noncompliance with any applicable law, rule or regulation, to Us within 2 days of Your receipt of these items. We accept no responsibility for any of Your operations, janitorial or otherwise.
SECTION 4.7 TAX PAYMENTS; CONTESTED ASSESSMENTS.
You will promptly pay when due all taxes required by any federal, state or local tax authority including unemployment taxes, withholding taxes, income taxes, tangible commercial personal property taxes, real estate taxes, intangible taxes and all other indebtedness You incur in the conduct of the Anago Unit Franchise. You will pay to Us an amount equal to any sales tax, goods and services taxes, gross receipts tax, or similar tax imposed on Us for any payments to Us required under this Agreement, unless the tax is measured by or involves the net income or Our corporate status in a state. If We pay any tax for which You are responsible, You will promptly reimburse Us the amount paid. If there is any bona fide dispute as to liability for taxes assessed or other indebtedness, You may contest the validity or the amount of the tax or indebtedness in accordance with procedures of the taxing authority or applicable law. However, You will not permit a tax sale or seizure by levy or signing or similar writ or warrant, or attachment by a creditor, to occur against any assets used in the Anago Unit Franchise.
SECTION 4.8 CLIENT SURVEYS; CLIENT LIST.
You will present to Clients all Performance Evaluation forms We require and will participate and/or request Our Clients to participate in all marketing surveys performed by or for Us. You will maintain a Current Client list containing each Client's name, address, telephone number and zip/postal code and supply a copy of the list to Us on a quarterly basis.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the franchisee is responsible for promptly paying all required federal, state, and local taxes. These taxes include unemployment, withholding, income, tangible commercial personal property, real estate, and intangible taxes, as well as any other debts incurred while operating the Anago Unit Franchise. The franchisee must also pay Anago an amount equal to any sales tax, goods and services taxes, or gross receipts tax imposed on Anago for payments made under the Franchise Agreement, unless the tax is based on Anago's net income or corporate status in a state. If Anago pays any tax on behalf of the franchisee, the franchisee must promptly reimburse Anago for the amount paid.
The franchisee may contest the validity or amount of taxes or other debts if there is a legitimate dispute, following the procedures of the taxing authority or applicable law. However, the franchisee cannot allow a tax sale or seizure by levy, signing, writ, warrant, or attachment by a creditor to occur against any assets used in the Anago Unit Franchise. This means the franchisee must take steps to prevent any liens or seizures on their business assets due to unpaid taxes or debts.
Subfranchisors are responsible for the payment of sales tax, as applicable, which payments will be made from the Subfranchisor's operating account. During any period that Subfranchisor is in default of this Agreement, and for 90 days thereafter (the "Default Period"), Franchisor will have the right to deposit and hold in the Anago Escrow Account certain Client receipts (the "Escrow Receipts"), less any funds owed to Franchisor or its affiliates for royalties, accounting fees, service fees (bank fees, credit card fees, or other fees relating to billing and collections), advertising fees, late fees, temporary management fees, interest, and any other payments due to Franchisor its affiliates hereunder.