If an Anago franchisee is required to pay
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]
You will be responsible for the payment of sales tax, as applicable.
Payments will be made from your operating account.
...
You will be subject to an annual minimum Client Marketing Spend. To comply with the Client Marketing Spend, you will be required to spend at least $50,000 per calendar year on marketing Anago services to the existing and potential clients in the Area and provide us with
satisfactory proof of these expenditures in the form requested by us. If you fail to meet the above requirements, you must pay us the difference between the required Client Marketing Spend and the portion of the Client Marketing Spend you actually spent during the applicable calendar year. We may use such amounts for any purpose in our sole discretion. The Client Marketing Spend requirement will be prorated for each partial calendar year of the term of the Subfranchise Rights Agreement. You must not use any false or misleading advertising in the solicitation of prospective Unit Franchisees.
...
[Item 23: RECEIPTS]
...
SECTION 4.7 TAX PAYMENTS; CONTESTED ASSESSMENTS.
You will promptly pay when due all taxes required by any federal, state or local tax authority including unemployment taxes, withholding taxes, income taxes, tangible commercial personal property taxes, real estate taxes, intangible taxes and all other indebtedness You incur in the conduct of the Anago Unit Franchise. You will pay to Us an amount equal to any sales tax, goods and services taxes, gross receipts tax, or similar tax imposed on Us for any payments to Us required under this Agreement, unless the tax is measured by or involves the net income or Our corporate status in a state. If We pay any tax for which You are responsible, You will promptly reimburse Us the amount paid.
...
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]
...
During any period that you are in default of the Subfranchise Rights Agreement but the Subfranchise Rights Agreement is not terminated, and for 90 days, or more, thereafter (the "Default Period"), we may deposit and hold in the Anago Escrow Account certain client receipts (the "Escrow Receipts"), less any funds owed to us or our affiliates for Royalties, Administrative Support fees, Insurance fees, accounting fees, service fees (bank fees, credit card fees, or other fees relating to billing and collections), advertising fees, late fees, temporary management fees, interest, and any other payments due to Franchisor its affiliates hereunder.
...
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 postage.
...
You are required to be covered under the Anago National Insurance program for the entire Term. The insurance fee will be paid to us or our designee, which we will pay to the insurance company. Premiums for any such insurance plans may vary in different states and may change from year to year.
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, franchisees are responsible for various payments. Anago franchisees must pay sales tax, as applicable, from their operating account. They are also subject to an annual minimum Client Marketing Spend of at least $50,000 per calendar year, which requires them to market Anago services to existing and potential clients in their area. If a franchisee fails to meet this spending requirement, they must pay Anago the difference between the required amount and what they actually spent.
Additionally, Anago franchisees are responsible for promptly paying all federal, state, and local taxes, including unemployment, withholding, income, tangible commercial personal property, real estate, and intangible taxes. They must also reimburse Anago for any sales tax, goods and services taxes, gross receipts tax, or similar tax imposed on Anago for payments made under the Subfranchise Rights Agreement, unless the tax is based on Anago's net income or corporate status.
During a default period, Anago may deposit client receipts into an escrow account and deduct amounts owed for royalties, administrative support fees, insurance fees, accounting fees, service fees, advertising fees, late fees, temporary management fees, and interest. Anago may also charge an accounting fee of 1% of the franchisee's weekly Gross Revenues, as well as a $25.00 accounting fee per Unit Franchise monthly statement, plus postage costs. Franchisees are also required to be covered under the Anago National Insurance program, with premiums that may vary by state and change from year to year.