How often must Anago subfranchisees deposit client receipts into the designated escrow account?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
However, you must deposit client receipts into the designated escrow account (as described in detail in Item 11) on a daily basis.
We will then make weekly distributions from the escrow account to you, less the estimated amount of Royalty fees, Administrative Support fees, Billing and Collection fees and any other amounts you owe us under the Subfranchise Rights Agreement which have accrued to us but have not yet been paid.
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, subfranchisees are required to deposit client receipts into a designated escrow account on a daily basis. This requirement is detailed in Item 11 of the FDD. Anago then makes weekly distributions from this escrow account to the subfranchisee. These distributions are net of royalty fees, administrative support fees, billing and collection fees, and any other outstanding amounts owed to Anago under the Subfranchise Rights Agreement.
This daily deposit requirement ensures that Anago has a consistent and timely view of the subfranchisee's revenue. It also allows Anago to collect its fees regularly and efficiently. The weekly distributions provide the subfranchisee with access to their funds while ensuring Anago's financial interests are protected.
For a prospective Anago subfranchisee, this means implementing a system for daily tracking and depositing of client receipts. This could involve additional administrative work and attention to detail to ensure compliance. Subfranchisees should carefully review Item 11 of the FDD to fully understand the escrow account procedures and the implications for their cash flow.