For Anago, what is the name of the account where the Subfranchisor will deposit all Client payments?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
l not be commingled with any other funds of Franchisor, or of any other of Franchisor's subfranchisors' client payments. Subfranchisor will set up a separate operating account in its corporate name d/b/a "Anago of [Insert Area]". All Client checks and payments shall be made payable in the name of the Anago Escrow Account, and Subfranchisor must deposit all client checks and payments received into such account on a daily basis.
- (c) Distribution of Client Receipts. After Subfranchisor receives a Client payment and deposits that payment into the designated Anago Escrow Account, Franchisor will: (i) distribute to Subfranchisor once per week, on Wednesday, the Client Receipts deposited into the Anago Escrow Account during the prior week (with a week running from Sunday through Saturday) which have cleared, less any funds owed to Franchisor or its 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; and (ii) Franchisor will hold back in the Anago Escrow Account a portion of the funds sufficient to cover amounts Subfranchisor owes to it under this Agreement, as described in subsection (i). Subfranchisor will be responsible for the payment of sales tax, as applicable, which payments will be made from Subfranchisor's operating account. Subfranchisor is solely responsible for payment to its Unit Franchisees for services rendered to Clients, which payments should be made on the 20th day of each month following the month in which services were rendered, or as otherwise prescribed in its Unit Franchise Agreement, as authorized by Franchisor, and Subfranchisor will provide its Unit Franchisees with a statement detailing the previous month's accounting activity.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the account where the Subfranchisor deposits all client payments is called the "Anago Escrow Account". All client checks and payments must be made payable to this account, and the Subfranchisor is required to deposit these payments into the account daily.
After the Subfranchisor deposits a client payment into the Anago Escrow Account, Anago will distribute the client receipts to the Subfranchisor weekly, specifically on Wednesdays, for payments that cleared from the prior week (Sunday through Saturday). From this distribution, Anago deducts any royalties, administrative support fees, insurance fees, accounting fees, service fees, advertising fees, late fees, temporary management fees, interest, and any other payments owed to Anago or its affiliates. Anago also withholds a portion of the funds in the Anago Escrow Account to cover amounts the Subfranchisor owes to it under the agreement.
If a client unintentionally sends payments directly to the Subfranchisor's or a Unit Franchisee's operating account, the Subfranchisor must immediately notify Anago and deposit the payment into the Anago Escrow Account. Neither the Subfranchisor nor any Unit Franchisee is allowed to deposit client payments directly into their own accounts. Depositing payments into any account other than the Anago Escrow Account constitutes a default under the agreement, which authorizes Anago to take over all billing and invoicing and notify clients to forward all invoice payments directly to Anago.