When is the monthly Royalty Fee due for an Anago franchise?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
We will collect Royalty fees once a month on or around the 25th of each month.
However, you must deposit client receipts into the designated escrow account (as described in detail in Item 11) on a daily basis.
We will then make weekly distributions from the escrow account to you, less the estimated amount of Royalty fees, Administrative Support fees, Billing and Collection fees and any other amounts you owe us under the Subfranchise Rights Agreement which have accrued to us but have not yet been paid.
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, royalty fees are collected once a month, typically around the 25th of each month. However, the actual process involves a bit more nuance. Anago franchisees are required to deposit client receipts into a designated escrow account on a daily basis.
From this escrow account, Anago makes weekly distributions to the franchisee. These distributions are net of several fees, including estimated royalty fees, administrative support fees, billing and collection fees, and any other outstanding amounts owed to Anago under the Subfranchise Rights Agreement. This means that while the formal royalty fee collection happens around the 25th, Anago effectively deducts estimated royalty amounts on a weekly basis from the franchisee's earnings.
This system ensures that Anago receives its royalty payments regularly and reduces the risk of late or missed payments. For the franchisee, it means managing cash flow with the understanding that a portion of their earnings will be allocated to these fees each week. It's important for prospective franchisees to understand this process and factor it into their financial planning.