What is the purpose of the monthly reconciliation that Anago performs?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) Monthly Reconciliation.
By or about the 25 th of each month, Franchisor will calculate the Subfranchisor's monthly Gross Revenues based on the Client payments deposited into the Anago Escrow Account during the previous calendar month.
By or about the 26 th of each month, Franchisor will distribute to Subfranchisor any amounts not previously distributed to Subfranchisor as part of the weekly distributions based on Gross Revenues received during the previous month, less any Royalty Fees, Fund contributions and any other payments owed to Franchisor which accrued during the previous calendar month, and less a holdback amount to satisfy the minimum account balance required to maintain the Anago Escrow Account.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the monthly reconciliation serves to calculate the Subfranchisor's monthly Gross Revenues based on client payments deposited into the Anago Escrow Account during the previous calendar month. This calculation occurs around the 25th of each month.
Around the 26th of each month, Anago distributes to the Subfranchisor any amounts not previously distributed as part of the weekly distributions. This distribution is based on Gross Revenues received during the previous month. From this amount, Anago deducts Royalty Fees, fund contributions, and any other payments owed to Anago that accrued during the previous calendar month.
Additionally, Anago deducts a holdback amount to maintain the minimum account balance required for the Anago Escrow Account. This reconciliation ensures that the Subfranchisor receives the correct amount of revenue after all applicable fees and deductions are accounted for, while also maintaining the necessary balance in the escrow account.