What happens to the balance of payments after Anago retains the Royalty Fee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
xpense of Your business.
SECTION 2.6 ASSISTANCE IN INITIAL SET-UP AND FIRST TIME CLEANING.
We will provide to You experienced field support and accompany You during the initial set-up and first-time cleaning of the very first Account You service pursuant to this Agreement.
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.
We will only be responsible for the invoicing or collection of any monies due from Accounts assigned to you or to with respect to which you sign a joinder.
- (b) Supply Sources. We will continue to investigate supply sources for better pricing. Although You are not required to purchase any cleaning equipment or supplies from Us, We may be able to obtain lower prices on supplies and equipment and will direct You to that supplier without any obligation on Your part to purchase from them.
- (c) Field Visits. You understand and acknowledge that detail of the System is essential to the Anago brand and all Franchised Units in order to (i) develop and maintain quality brand standards, (ii) increase the demand for services sold by Franchised Units and (iii) protect Anago's name and goodwill. In an effort to further these interests We have the right to perform periodic quality control visits to each building You clean. All brand standards will be inspected and recommendations will be made to You. Our representative will operate from the local Anago office and will be available during normal business hours to answer questions and to assist with Unit Franchise operational questions.
- (d) Assistance with Business Development. We will, at Our discretion and subject to availability, continue to provide You with estimating expertise, custom proposals and references in order to assist development of Your Unit Franchise's business.
- (e) Assistance with Clients' Services. You understand that You are the primary contact for the customer with respect to service complaints and/or requests; however Our local office will accept service calls from Anago Accounts assigned to You and relay these service calls to You in a timely manner.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the handling of payments and fees depends on whether you are operating as a Unit Franchisee or a Subfranchisor. For Unit Franchisees, Anago invoices clients directly for services rendered. When client payments are received, Anago withholds amounts due from the Unit Franchisee for Royalty Fees, Administration Fees, Advertising Contributions, C-Fees, Note Payments, and any other amounts owed to Anago or its affiliates, including costs incurred for enforcing payments. The remaining balance is then mailed to the Unit Franchisee, typically between the 20th and 25th of each month, as detailed in the Owner's Report.
For Subfranchisors, the process is slightly different. Clients make payments into the Anago Escrow Account. Anago then distributes funds weekly to the Subfranchisor, deducting Royalties, Administrative Support fees, Insurance fees, accounting fees, service fees, advertising fees, late fees, temporary management fees, interest, and any other payments due to Anago or its affiliates. Anago also retains a portion of the funds in the escrow account to cover amounts the Subfranchisor owes under their agreement.
It is important to note that Subfranchisors are responsible for paying their Unit Franchisees for services rendered to clients, typically around the 20th of each month, and must provide a statement detailing the previous month's accounting activity. Additionally, all client checks and payments must be made payable to the Anago Escrow Account and deposited daily. Failure to forward funds received directly to Anago can result in a Handling Fee of $100 per payment. These procedures ensure that Anago maintains accurate records and receives its due fees while also providing a structured payment system for franchisees.