What responsibility or liability does the Franchisor have regarding Anago Client Accounts or Client payment failures?

According to Anago's 2025 Franchise Disclosure Document, the Franchisor has very limited responsibility or liability regarding client accounts or client payment failures. Specifically, the subfranchisor is responsible for collecting payments from clients for services rendered. Anago explicitly states that it "shall have no responsibility or liability relating to any Client Accounts or the failure of any Client to pay any amount due under any Client Account." However, Anago retains the right to assist the subfranchisor in collecting payments from clients if it deems necessary.

This arrangement places the onus of managing client payments and handling any non-payment issues squarely on the subfranchisor. While Anago may offer assistance in collecting payments, it is not obligated to do so. This means the subfranchisor must have systems in place to ensure timely collection of payments and to address any instances of client payment failure. This could include implementing credit checks for new clients, sending out regular payment reminders, and having a process for following up on overdue invoices.

Furthermore, the subfranchisor is responsible for paying the Unit Franchisees for services rendered to clients. This payment should be made on the 20th day of each month following the month in which services were rendered. This means that the subfranchisor needs to ensure that they have collected sufficient funds from clients to cover these payments. The subfranchisor must also provide its Unit Franchisees with a statement detailing the previous month's accounting activity.

In the event of default, termination, or expiration of the subfranchise agreement, Anago retains ownership of all rights to clients and client accounts. This includes all client lists and documentation. This underscores the importance of the subfranchisor diligently managing client accounts and payments, as any issues in this area could potentially lead to default and loss of these valuable assets.