factual

How often does Anago's Franchisor pay the Subfranchisor's operating account?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

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, after Anago receives a client payment, they will distribute the payment to the subfranchisor's operating account once per week. This payment is made on Wednesday for the prior week's cleared deposits (Sunday through Saturday).

The amount paid to the subfranchisor's operating account will be the client payments deposited into the Anago Escrow Account, less any applicable fees owed to Anago or its affiliates under the Subfranchise Rights Agreement. These fees can include royalties, administrative support fees, insurance fees, service fees (including bank charges), lease payments, late payments, late fees, and interest payments.

This weekly payment schedule ensures that subfranchisors receive their portion of client payments regularly, but it's crucial for prospective subfranchisors to understand which fees are deducted and how these deductions might affect their cash flow. Subfranchisors are also responsible for the payment of sales tax, as applicable, from their operating account.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.