What happens to Anago advertising fund contributions not spent in the fiscal year in which they accrue?

According to Anago's 2025 Franchise Disclosure Document, any advertising fund contributions that are not spent during the fiscal year in which they were collected will typically be carried forward to the next year. These carried-over funds will then be used for advertising and related expenses in the subsequent year.

This policy ensures that advertising funds are not lost or reverted back to Anago, but are instead reinvested in marketing efforts to benefit the Anago franchise system. This can be seen as a positive aspect for franchisees, as it suggests that contributions are intended to be used for their intended purpose, even if there are delays in spending.

However, the FDD also states that Anago is not required to have the fund audited, but if a statement of operations is developed, it will be prepared annually by an independent public accountant selected by Anago. Franchisees are entitled to a copy of this statement upon reasonable request. This lack of a mandatory audit could be a concern for some franchisees, as it provides less transparency regarding the fund's management and expenditures. Prospective franchisees may want to inquire about the typical frequency and scope of these statements to ensure they are comfortable with the level of oversight.