Is the NBDS system intended to be a complete accounting or bookkeeping system for an Anago franchise?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
The NBDS System's principal functions are to provide permanent records of sales transactions at your Anago Subfranchise and to collect and manage information about the nature of those transactions. The types of information that it collects and generates are telemarketing and sales levels, client information, individual sales data, and various financial information. This information is considered our Confidential Information. We will have electronic and manual access to the information that the NBDS System generates and there are no contractual limitations on our right to access this information. NBDS is not intended to be an accounting or bookkeeping system. You must obtain your own accounting and or bookkeeping system.
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, the NBDS (presumably Anago's Business Data System) is not intended to be a complete accounting or bookkeeping system. While the NBDS System does collect and manage information such as telemarketing and sales levels, client information, individual sales data, and various financial information, Anago subfranchisees are required to obtain their own separate accounting and/or bookkeeping system to manage their finances fully. This means that in addition to the NBDS system, franchisees will need to invest in and manage a separate accounting system.
Anago retains electronic and manual access to all information generated by the NBDS System, with no contractual limitations on their access rights. This allows Anago to monitor the subfranchisee's sales transactions and other key performance indicators. The cost associated with purchasing a computer system for the Anago franchise ranges from $15,000 to $25,000, and franchisees are responsible for the costs of upgrades and updates to their computer systems, which may range from $500.00 to $5,000.00.
While Anago uses the NBDS system to invoice customers on behalf of the franchisee and unit franchisees, and also manages the Anago Escrow Account for client receipts, these services do not replace the need for a comprehensive accounting system managed by the franchisee. The franchisee is ultimately responsible for the payment of sales tax and must maintain a separate operating account. This division of financial responsibilities highlights the importance of understanding the specific functions of the NBDS system and the franchisee's obligations to maintain their own financial records.