What is the name of the escrow account that Anago Subfranchisees must use?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
months and, at our discretion, indefinitely, upon an Event of Default.
- (ii) Deposit of Client Receipts. Unless we direct otherwise, you will collect and deposit all your client payments into an escrow account in our name, at an acceptable banking facility designated or approved in writing by us (the "Anago Escrow Account"), until the time for distribution to you and later distribution to your Unit Franchisees. You will also set up a separate operating account in your corporate name d/b/a Anago of XXXX. You will require your clients to make all checks payable to the Anago Escrow Account for any services performed by the Unit Franchisees in your Area.
- (iii) Distribution of Client Receipts. After we receive a client payment, we will distribute the payment as follows: (i) you will receive payments deposited into the Anago Escrow Account less any applicable fees owed us or our affiliates under the Subfranchise Rights Agreement, which will be paid to Subfranchisor's operating account by Franchisor once per week (based on a week from Sunday through Saturday), on Wednesday, for the prior week's cleared deposits less any Royalties, Administrative Support fees, Insurance fees, service fees (including bank charges), lease payments, late payments, late fees, interest payments, and/or any amounts due to us by you; and (ii) we will retain our portion of the funds deposited into the Anago Escrow Account as stated above. You will be responsible for the payment of sales tax, as applicable.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Subfranchisees are required to deposit client payments into an escrow account named the "Anago Escrow Account". This account is held in Anago's name at a banking facility that Anago designates or approves in writing. Subfranchisees must also establish a separate operating account under their corporate name, doing business as Anago of XXXX.
Checks from clients for services performed by Unit Franchisees in the Subfranchisee's area must be made payable to the Anago Escrow Account. Anago will then distribute payments from this escrow account to the Subfranchisee, deducting any applicable fees owed to Anago or its affiliates under the Subfranchise Rights Agreement. These fees are then paid to Anago's operating account.
This arrangement ensures that Anago has control over the funds and can deduct royalties, administrative support fees, insurance fees, service fees, and any other amounts owed by the Subfranchisee before distributing the remaining balance. This system protects Anago's financial interests and ensures consistent fee collection. The Subfranchisee is responsible for paying sales tax from their operating account and for paying their Unit Franchisees directly.