factual

Is Anago required to spend any amount on advertising in a franchisee's specific area or territory?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

As of the issuance date of this Disclosure Document, there is no Fund in effect. We are not required to spend any amount on advertising in your Area or territory. If a Fund is developed, businesses owned by us and/or our affiliates will be required to contribute.

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, Anago is not required to spend any amount on advertising in a franchisee's area or territory. However, if Anago develops an advertising fund, businesses owned by Anago and/or its affiliates will be required to contribute to it.

Anago has the right to establish national and/or regional advertising funds and/or regional advertising cooperatives for the common benefit of the Anago franchise system. If a fund is established, Anago may require franchisees to contribute a monthly amount not to exceed 2.2% of their gross revenues during the preceding month. These funds will be used for advertising, marketing, promotion, product development, public relations, and administrative expenses. Anago does not guarantee that expenditures will be equivalent or proportionate to contributions paid into the fund, nor that any franchisee will directly benefit on a pro-rata basis from the fund's activities.

Anago also reserves the right to establish local advertising cooperatives, comprised of geographical areas where two or more businesses operate and their marketing efforts overlap. If established, all businesses in the area, including those owned by Anago or its affiliates, will be required to contribute equally to the cooperative. Franchisees must participate in the marketing programs conducted by the cooperative and use only marketing materials approved by Anago. Currently, there are no Anago Marketing or Advertising Committees advising Anago on advertising and/or marketing policies, and there are no local advertising cooperatives in effect.

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.