What is included in the calculation of the Average Annual Sales (AAS) for Anago franchises?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Average Annual Sales ("AAS") is calculated as the average of the total amount billed for all janitorial services including day porter services and special services sold by or on behalf of our Franchisees as well as revenue collected by the Franchisees for the sale of Unit Franchises. These numbers do not include any prepayments for additional janitorial services, supplies, or equipment made by the Unit Franchisees, which can increase actual sales achieved. These numbers do not include any federal, state, or local taxes collected on behalf of Franchisees in connection with their Anago franchised businesses. AAS is not the same as "Gross Revenues" on which certain fees you will pay us under your Subfranchise Rights Agreement are based.
AAS does not reflect your profits or net income, because we will take deductions from your AAS. Your portion of the AAS is subject to further deductions and adjustments authorized by the Subfranchise Rights Agreement. Please refer to Item 6 for more details about additional deductions and adjustments.
Written substantiation for the financial performance representation will be made available to a prospective Subfranchisor upon request.
Some outlets have sold this amount. Your individual results may differ. There is no assurance that you'll sell as much.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 53–55)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Average Annual Sales (AAS) is calculated by averaging the total amount billed for all janitorial services, including day porter services and special services, that are sold by or on behalf of Anago franchisees. The AAS also includes revenue collected by franchisees from the sale of Unit Franchises. However, the AAS calculation does not include any prepayments for additional janitorial services, supplies, or equipment made by Unit Franchisees. Additionally, the calculation excludes any federal, state, or local taxes collected on behalf of franchisees in connection with their Anago franchised businesses.
It is important to note that the AAS is not the same as "Gross Revenues," which is the basis for certain fees that franchisees will pay to Anago under the Subfranchise Rights Agreement. The AAS also does not reflect a franchisee's profits or net income, as deductions will be taken from the AAS. A franchisee's portion of the AAS is subject to further deductions and adjustments as authorized by the Subfranchise Rights Agreement, as detailed in Item 6 of the FDD.
Prospective Anago subfranchisors can request written substantiation for the financial performance representation. The FDD explicitly states that there is no assurance that a franchisee will achieve the same sales as other franchisees. If a prospective franchisee receives any financial performance information or projections of future income outside of the FDD, they are advised to report it to Anago Franchising, Inc., the Federal Trade Commission, and the appropriate state regulatory agencies.