What happens if amounts billed to Anago accounts assigned to a franchisee are unpaid?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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 accurat
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, franchisees will bear the loss of nonpayment for amounts billed to their assigned accounts, unless Anago has provided a written guarantee of payment. Anago will take action to enforce payment at the franchisee's discretion and expense.
Anago also retains the right to independently pursue recovery of unpaid fees that would have been collected from the account. To ensure accurate record-keeping, all client payments must be remitted to Anago. Failure to forward payments received by the franchisee will result in a Handling Fee of $100 per payment.
This arrangement means that Anago franchisees carry the risk of client non-payment unless a written guarantee is in place. Franchisees must also be diligent in forwarding all client payments to Anago to avoid incurring handling fees. The franchisee is responsible for the costs associated with pursuing unpaid invoices, which could impact their profitability. This is a fairly typical arrangement in the commercial cleaning franchise industry, where the franchisor often handles billing and collections.