If Anago accepts the delegation of billing and collection from a subfranchisee, for how long may Anago process client invoices and Unit Franchise statements?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
chise Rights Agreement immediately deduct from amounts paid to you on your client receipts, any amounts owed us.
- (v) Billing and Collection Procedures Upon Your Request. You may, from time to time, ask us to allow you to delegate your role as your Unit Franchisees' billing and collections agent. If, in our sole discretion, we accept that delegation and assume the processing of client invoices and Unit Franchise statements, we may do so for an indefinite period. We will charge you a monthly accounting fee equal to the greater of $1,000 or 1% of your monthly Gross Revenues, plus the cost of postage. We will also charge you a $25.00 accounting fee per Unit Franchisee monthly state
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 a subfranchisee requests that Anago handle billing and collections for their Unit Franchisees, Anago has the sole discretion to accept this delegation. If Anago agrees to assume the processing of client invoices and Unit Franchise statements, they may continue to do so for an indefinite period.
However, this service is not free. Anago will charge the subfranchisee a monthly accounting fee. This fee is the greater of $1,000 or 1% of the subfranchisee's monthly Gross Revenues, plus the cost of postage. In addition to this, Anago will charge a $25.00 accounting fee for each Unit Franchisee monthly statement.
These accounting fees will be deducted from the amounts owed to the subfranchisee during the week the processing costs were incurred. This arrangement provides a potentially valuable service for subfranchisees who may struggle with billing and collections, but it comes at a significant cost that must be carefully considered.
It is important for prospective Anago subfranchisees to evaluate their own capabilities and resources for managing billing and collections, and to weigh the costs of Anago's service against the potential benefits. Understanding the terms and conditions of this delegation is crucial for making informed business decisions.