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What happens if Anago overpays me or pays me for work I didn't perform?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

At Our option, You will join in as a party to the Accounts secured by Us through a contract with a Client or those contracts will be assigned to You, in either case until the earlier of (a) the expiration or termination of this Agreement, (b) the contract with the Client is terminated, cancelled, or transferred, or (c) any situation arises whereby You errantly cease service to the Account. All Accounts will initially be between Us and the Client. All payments made by a Client under an Account will be sent directly to Us. You will receive the gross monthly revenues from the Account less the fees owed to Us as stated in Section 3.1 and any other liability You may have to Us. You are not permitted to offer, exchange or transfer Accounts that have been assigned to Your Unit Franchise or to which Your Unit Franchise has become a party by joinder except pursuant to a third-party's purchase of Your Anago business in accordance with this Agreement. You are not permitted to perform or invoice for janitorial or other services offered through Your Unit Franchise directly to those Accounts or to perform or invoice the Account for such services outside of the contract. You may however solicit and negotiate additional business with Clients assigned to You. All such additional business must be reflected on an amendment to the contract with the Account and will be subject to the provisions of the assignment of the contract, including Our appointment as Your agent for billing and collections related to the additional business. We will invoice for those services retaining Our fees earned under this Agreement.

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

What This Means (2025 FDD)

Based on the 2025 Anago Franchise Disclosure Document, all payments made by a client under an account are sent directly to Anago. The franchisee then receives the gross monthly revenues from the account, less fees owed to Anago and any other liabilities the franchisee may have to Anago. The document does not specifically address the scenario where Anago overpays a franchisee or pays them for work not performed.

However, the FDD does state that franchisees are not permitted to perform or invoice for janitorial or other services offered through their unit franchise directly to those accounts or to perform or invoice the account for such services outside of the contract. All additional business must be reflected on an amendment to the contract with the account and will be subject to the provisions of the assignment of the contract, including Anago's appointment as the franchisee's agent for billing and collections related to the additional business. Anago will invoice for those services retaining their fees earned under the agreement.

Since the FDD does not explicitly detail the procedure for handling overpayments or payments for unperformed work, it is important for a prospective franchisee to seek clarification from Anago regarding their policies on such matters. Specifically, a potential franchisee should ask Anago about the mechanisms in place to correct payment errors, the process for reconciling payments with work performed, and any potential recourse available to the franchisee in the event of discrepancies.

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.