What happens if Anago determines that a subfranchisee collected a client receipt but failed to pay the corresponding Unit Franchisee in a timely manner?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
l be credited for the invoice the client designates, and will be distributed to the Unit Franchisee accordingly. If we determine, that you have collected a client receipt and subsequently failed to pay the corresponding Unit Franchisee timely pursuant to the terms of the Unit Franchise Agreement, then we may pay the amount owed to the Unit Franchisee directly. We will deduct and offset the same amount from the Anago Escrow Account. We may independently consult with each Unit Franchisee and client to determine the amount of funds the Unit Franchisee is owed. During the Default Period, you agree to cooperate fully with us to expedite full and timely payment to each Unit Franchisee. You will furnish to us, within 48 hours of our request, a copy of all prior client invoices regarding services and supplies provided to all your clients and Unit Franchisees. We will charge you an accounting fee of 1% of your weekly Gross Revenues. We will charge you a $25.00 accounting fee per Unit Franchise monthly statement, plus the cost of posta
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if Anago determines that a subfranchisee has collected a client receipt but failed to pay the corresponding Unit Franchisee in a timely manner, Anago may directly pay the amount owed to the Unit Franchisee. To cover this payment, Anago will deduct and offset the amount from the Anago Escrow Account.
Anago may independently consult with both the Unit Franchisee and the client to verify the amount of funds owed to the Unit Franchisee. During any period of default, the subfranchisee is expected to fully cooperate with Anago to ensure timely payment to each Unit Franchisee. This includes providing copies of all prior client invoices regarding services and supplies to all clients and Unit Franchisees within 48 hours of Anago's request.
Additionally, Anago will charge the subfranchisee an accounting fee of 1% of their weekly Gross Revenues, along with a $25.00 accounting fee per Unit Franchise monthly statement, plus the cost of postage. These accounting fees will be withheld from amounts due to the subfranchisee in the week the costs for processing were incurred. This ensures that Unit Franchisees are paid correctly and in a timely manner, while also holding the subfranchisee accountable for any payment discrepancies.