If Anago exercises its option to assume the Client Accounts, what obligations does Anago assume?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
chisor, at its option, may for a period of one year after written notice of default, as described in Subsection 2.4(f), immediately deduct from amounts paid to Subfranchisor on its Client receipts, any amounts owed to Franchisor.
(h) Assumption of Processing. Franchisor, upon default of this Agreement or at the request of Subfranchisor, may, at its sole option, assume the processing of Client invoices and Unit Franchisee statements for an indefinite period. In such an event, Franchisor will charge Subfranchisor a monthly accounting fee equal to $1,000.00 or 1% of monthly Gross Revenues (whichever is greater), plus the cost of postage. Additi
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, when Anago assumes processing of client invoices and Unit Franchisee statements due to a subfranchisor's default or at the subfranchisor's request, Anago will charge the subfranchisor a monthly accounting fee. This fee is the greater of $1,000.00 or 1% of monthly Gross Revenues, plus the cost of postage.
Additionally, Anago will charge the subfranchisor a $25.00 accounting fee per Unit Franchisee monthly statement. These accounting fees will be deducted from the amounts due to the subfranchisor during the week the processing costs were incurred.
This arrangement continues for an indefinite period at Anago's discretion. This means that if a subfranchisor defaults or requests assistance, they will incur ongoing accounting fees that reduce their revenue, highlighting the importance of maintaining compliance and financial stability.