Who initially holds the contracts for Anago accounts secured by Anago?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
According to Anago's 2025 Franchise Disclosure Document, Anago retains initial ownership of client contracts it secures. Specifically, all accounts will initially be between Anago and the client. Payments from the client are made directly to Anago, which then distributes the gross monthly revenues to the franchisee after deducting fees and liabilities.
This arrangement means that Anago franchisees do not directly contract with clients they service. Instead, they essentially operate as subcontractors for Anago. While franchisees receive revenue from these accounts, Anago maintains control over the client relationship and billing processes.
This structure has implications for the franchisee's business operations. The franchisee is not permitted to directly invoice or perform services outside the contract with Anago. However, franchisees can solicit additional business from existing clients, but such business must be added as an amendment to the original contract, with Anago continuing to act as the billing agent. Anago also has the right to negotiate contracts with third parties, requiring franchisees to use only those parties' products or services.
This arrangement ensures Anago maintains quality control and standardization across its franchise system. However, it also means that franchisees have limited autonomy in managing client relationships and revenue collection. Prospective franchisees should carefully consider this aspect of the Anago franchise model and understand the restrictions it places on their operational independence.