Does Anago have funds within an investment brokerage account?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
s of $400,000 with an estimated cost of the territory of $98,000 for a gain on sale of the territory assets of EHLB, Inc. dba Anago of Las Vegas of $302,000 which has been recorded as other income on the consolidated statement of operations. As EHLB, Inc. dba Anago of Las Vegas operations will not continue in future periods the revenue and expenses of the entity have been reclassed and reported with "other income and expenses". Net income (loss) for EHLB, Inc. dba Anago of Las Vegas for the years ended December 31, 2024 and 2023 totaling ($34,405) and $317,735, respectively, have been reclassed to other income (expenses) for compari
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the company does maintain funds within an investment brokerage account. As of December 31, 2024, Anago had $329,552 in such accounts. The FDD also shows that on December 31, 2023, the company had $54,207, and on December 31, 2022, the company had $191,769 in these accounts. These funds are not insured through the FDIC program.
This detail is important for prospective franchisees as it provides insight into Anago's financial management practices. Knowing that Anago utilizes investment brokerage accounts and the amounts held within them can help franchisees assess the financial stability and sophistication of the company. However, it's crucial to note that these funds are not FDIC-insured, which could present a risk, although the specific risk is not detailed in the excerpt.
Franchisors typically manage their finances in various ways, including maintaining cash accounts, investing in securities, or utilizing other investment vehicles. The fact that Anago has a portion of its funds in a brokerage account suggests a strategy to potentially grow its assets, but it also introduces a level of risk that wouldn't be present in solely FDIC-insured accounts. Prospective franchisees should consider this information as part of their overall due diligence, evaluating the potential risks and benefits associated with Anago's financial practices.
It would be prudent for potential franchisees to inquire further about the types of investments held in the brokerage account, the company's investment strategy, and the reasons for not insuring these funds through FDIC or similar programs. Understanding these aspects can provide a more comprehensive view of Anago's financial health and risk management practices.