How does Anago handle agency billing collections received before services are provided?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
SECTION 2.7 CONTINUED ASSISTANCE AND SUPPORT.
Upon the opening of Your Anago Unit Franchise, We will provide to You the following:
(a) Invoicing and Accounting Services. You have agreed to retain Us as Your agent to directly invoice the Accounts that are assigned to You or with respect to which You sign a joinder, and You will forward to Us amounts We are due from Client payments sent or given directly to You. We will invoice the Accounts monthly for the cost of services and supplies You render under the contract with the Account. We will invoice the Accounts we assign to You and maintain those revenue Records for You. You hereby authorize and direct Us to withhold, on Your behalf, any Money due You from servicing the Accounts We assign to You for Royalty Fees, Administration Fees, Advertising Contributions, C-Fees, Note Payments and all other amounts You owe to Us or Our Affiliates and out-of-pocket costs (including attorneys' fees and court costs) We incur in enforcing payment of Accounts on Your behalf. On or before the 20th day but no later than the 25th day of each month following the month in which services were rendered, We will mail to You all monies collected as recorded in the "Due Owner" column of the Owners Report (monthly statement), less monies due Us in accordance with this Agreement. If amounts billed to the Accounts We assign to You are unpaid, You will incur the loss of nonpayment except in
instances where We have guaranteed in writing payments to You. We will take action to enforce payment at Your discretion and expense. You hereby also authorize and direct Us, at Our sole discretion, to initiate action on Our own to recover unpaid amounts of Our fees that would have been collected if the Account had paid as agreed. It is an essential part of Our record keeping that all amounts due from the Client be remitted to Us so that We can maintain accurate and timely records on the amounts due You and the failure to remit any payments received by You will result in significant additional costs to Us. Consequently, failure to forward any funds You receive to the Anago office will result in a Handling Fee of $100 per payment You fail to forward to compensate for this additional expense.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
The 2025 Anago Franchise Disclosure Document outlines the procedures for invoicing and collecting payments for services rendered by franchisees. Anago acts as the agent for franchisees, directly invoicing clients for services and supplies. Payments from clients are sent to Anago, even if initially received by the franchisee.
Anago withholds monies due from servicing accounts for royalty fees, administration fees, advertising contributions, C-Fees, note payments, and other amounts owed to Anago or its affiliates, including legal costs incurred in enforcing payments. After deducting these fees, Anago distributes the remaining balance to the franchisee. This distribution occurs on or before the 20th day, but no later than the 25th day, of each month following the month in which services were rendered.
If a franchisee receives payments directly from a client, they must forward these funds to Anago. Failure to do so results in a Handling Fee of $100 per payment to compensate Anago for the additional expense of reconciling the accounts. This policy ensures that Anago maintains accurate records of amounts due to franchisees and can properly allocate revenues and deduct fees. The FDD does not explicitly address collections received before services are provided, but the general procedure suggests that any payments received should be remitted to Anago for proper allocation and handling.