What is the purpose of the Advertising Fund for Anago Unit Franchises?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
We have established an advertising and marketing fund for Anago Unit Franchises (the "Fund"). We and/or AFI will have the sole discretion over the concepts, materials, media, type, nature, scope, frequency, place, form, copy, layout and content of all national, regional and local advertising paid out of the Fund. The Fund will be maintained and administered by Us, AFI, or Our Designee as follows:
(a) The Fund is intended to maximize general public recognition and acceptance of the Anago trademarks and System for the benefit of all Franchisees within the System, and neither We, nor AFI is obligated to make expenditures for You which are equivalent or proportionate to Your contribution or to ensure that You benefit directly or pro-rata from the placement of advertising or marketing.
(b) The Fund, all contributions to the Fund, and any earnings by the Fund, are used exclusively to meet the costs and expenses of maintaining, administering, directing, conducting and preparing advertising, marketing, public relations or promotional programs and materials, and any other activities which We and/or AFI believes will enhance the image of the System, including the costs of preparing and conducting media advertising campaigns; direct mail advertising; marketing surveys and other public relations activities; employing advertising and/or public relations agencies; purchasing promotional items, conducting and administering visual merchandising, promotions and merchandising programs; and providing promotional and other marketing materials and services.
Advertising may be regional or national, in the following types of media: print, internet, radio or television.
The Fund may also be used to provide rebates or reimbursements to You for local expenditures on products, services or improvements, approved in advance by Us or AFI, which We or AFI believe promote general public awareness and favorable support for the franchise System.
- (c) All sums that You contribute to the Fund will be accounted for separately from Our other funds and will not be used for any of Our general operating expenses.
However, We may use the advertising contributions to pay for the costs, expenses and overhead incurred by Us and/or AFI in activities related to the direction, implementation and administration of the Fund, including costs of personnel for creating and implementing advertising, merchandising, promotional and marketing programs.
Neither the Fund nor its earnings will belong to Us or AFI.
We do not owe any fiduciary obligation to You for administering the Fund or any other reason.
Separate bookkeeping accounts will be maintained for the Fund.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the advertising and marketing fund (the "Fund") is intended to maximize general public recognition and acceptance of the Anago trademarks and System for the benefit of all Franchisees within the System. Anago and/or AFI will have sole discretion over the concepts, materials, media, type, nature, scope, frequency, place, form, copy, layout and content of all national, regional and local advertising paid out of the Fund. Neither Anago, nor AFI is obligated to make expenditures for a franchisee which are equivalent or proportionate to their contribution or to ensure that a franchisee benefits directly or pro-rata from the placement of advertising or marketing.
The Fund, all contributions to the Fund, and any earnings by the Fund, are used exclusively to meet the costs and expenses of maintaining, administering, directing, conducting and preparing advertising, marketing, public relations or promotional programs and materials, and any other activities which Anago and/or AFI believes will enhance the image of the System, including the costs of preparing and conducting media advertising campaigns; direct mail advertising; marketing surveys and other public relations activities; employing advertising and/or public relations agencies; purchasing promotional items, conducting and administering visual merchandising, promotions and merchandising programs; and providing promotional and other marketing materials and services. Advertising may be regional or national, in the following types of media: print, internet, radio or television.
The Fund may also be used to provide rebates or reimbursements to a franchisee for local expenditures on products, services or improvements, approved in advance by Anago or AFI, which Anago or AFI believe promote general public awareness and favorable support for the franchise System. All sums that a franchisee contributes to the Fund will be accounted for separately from Anago's other funds and will not be used for any of Anago's general operating expenses. However, Anago may use the advertising contributions to pay for the costs, expenses and overhead incurred by Anago and/or AFI in activities related to the direction, implementation and administration of the Fund, including costs of personnel for creating and implementing advertising, merchandising, promotional and marketing programs. Neither the Fund nor its earnings will belong to Anago or AFI. Anago does not owe any fiduciary obligation to a franchisee for administering the Fund or any other reason. Separate bookkeeping accounts will be maintained for the Fund.