Are Anago franchisees required to segregate the income and expenses of their Anago Unit Franchise from other businesses in their financial statements?

According to Anago's 2025 Franchise Disclosure Document, franchisees are required to segregate the income and expenses of their Anago Unit Franchise from those of any other business they conduct. Anago may request that franchisees prepare and submit an annual balance sheet and income statement within 90 days of the end of the fiscal year, prepared according to Generally Accepted Accounting Principles.

The annual financial statement must be accompanied by an unqualified review opinion from an independent certified public accountant acceptable to Anago. The statement must also be signed by the franchisee or their Treasurer or Chief Financial Officer, attesting that the financial statements are correct and fairly present the franchisee's financial position. Franchisees must also supply copies of their federal and state income tax returns if requested by Anago, at the time these returns are filed with the appropriate tax authorities.

This requirement ensures that Anago can accurately assess the financial performance of each franchise unit and maintain the integrity of the Anago franchise system. It also helps franchisees maintain clear and accurate financial records for their Anago business, which can be beneficial for tax purposes and financial planning.