Is Anago obligated to make advertising expenditures for a Subfranchisor equivalent to their contributions?

According to Anago's 2025 Franchise Disclosure Document, Anago is not obligated to make advertising expenditures for a Subfranchisor that are equivalent or proportionate to the Subfranchisor's contributions to the advertising fund. The FDD states that Anago undertakes no obligation to make expenditures for a Subfranchisor which are equivalent or proportionate to contributions paid under the agreement. Additionally, Anago does not have to ensure that a Subfranchisor benefits directly or on a pro-rata basis from the advertising fund's activities. This means that while a Subfranchisor is required to contribute to the advertising fund, there is no guarantee that they will see a direct return on their investment in the form of advertising specifically targeted to their location or benefiting their franchise.

Anago has the right to establish national and/or regional advertising funds. If established, Anago may require the Subfranchisor to contribute a monthly amount not to exceed 2.2% of the Subfranchisor's Gross Revenues during the preceding month to the Fund. The content of all activities of the Fund, including the media selected, the area, and the units to be targeted, are at the sole discretion of Anago.

This arrangement is fairly typical in franchising, where franchisors control the advertising fund and have broad discretion over how it is spent. While this allows Anago to focus on system-wide marketing efforts, it also means that individual Subfranchisors have little control over how their advertising dollars are used. A prospective Subfranchisor should consider this carefully and evaluate whether they are comfortable with Anago's level of control over the advertising fund.