factual

What happens to Anago Advertising Fund contributions not spent in the fiscal year they accrue?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

Fund contributions not spent in the fiscal year in which they accrue will typically be carried forward to the next year and spent on advertising and related expenses.

Franchisor shall have the right to terminate the Fund at any time, however, the Fund will not be terminated until all contributions have been expended.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

What This Means (2025 FDD)

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

This policy ensures that advertising funds are not lost if they are not immediately spent. Instead, they are reinvested in the Anago system to support ongoing marketing and promotional efforts. This can benefit franchisees by providing a consistent stream of advertising resources.

Anago also retains the right to terminate the Fund at any time, but only after all contributions have been fully expended. This protects franchisees by ensuring that all collected advertising fees are used for their intended purpose before the fund is dissolved.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.