For what is Anago responsible regarding invoicing and collection of monies?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
We will only be responsible for the invoicing or collection of any monies due from Accounts assigned to you or to with respect to which you sign a joinder.
SECTION 2.7 CONTINUED ASSISTANCE AND SUPPORT.
Upon the opening of Your Anago Unit Franchise, We will provide to You the following:
(a) Invoicing and Accounting Services. You have agreed to retain Us as Your agent to directly invoice the Accounts that are assigned to You or with respect to which You sign a joinder, and You will forward to Us amounts We are due from Client payments sent or given directly to You. We will invoice the Accounts monthly for the cost of services and supplies You render under the contract with the Account. We will invoice the Accounts we assign to You and maintain those revenue Records for You. You hereby authorize and direct Us to withhold, on Your behalf, any Money due You from servicing the Accounts We assign to You for Royalty Fees, Administration Fees, Advertising Contributions, C-Fees, Note Payments and all other amounts You owe to Us or Our Affiliates and out-of-pocket costs (including attorneys' fees and court costs) We incur in enforcing payment of Accounts on Your behalf. On or before the 20th day but no later than the 25th day of each month following the month in which services were rendered, We will mail to You all monies collected as recorded in the "Due Owner" column of the Owners Report (monthly statement), less monies due Us in accordance with this Agreement. If amounts billed to the Accounts We assign to You are unpaid, You will incur the loss of nonpayment except in
instances where We have guaranteed in writing payments to You. We will take action to enforce payment at Your discretion and expense. You hereby also authorize and direct Us, at Our sole discretion, to initiate action on Our own to recover unpaid amounts of Our fees that would have been collected if the Account had paid as agreed. It is an essential part of Our record keeping that all amounts due from the Client be remitted to Us so that We can maintain accurate and timely records on the amounts due You and the failure to remit any payments received by You will result in significant additional costs to Us. Consequently, failure to forward any funds You receive to the Anago office will result in a Handling Fee of $100 per payment You fail to forward to compensate for this additional expense.
(d) All Clients will be invoiced, and all payments for services rendered under Client Accounts shall be collected and accounted for, in the manner and according to the procedures designated by Franchisor, which procedures may be modified by Franchisor at any time effective upon written notice to Subfranchisor. Subfranchisor shall collect all payments from Clients for services performed under each Client Account as and when such payments become due. Franchisor 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. Franchisor shall have the right, as it deems necessary in its sole discretion, to assist Subfranchisor in the collection of payments from Clients.
Franchisor will send monthly
invoices to every Client account serviced by Subfranchisor's Unit Franchisees for up to twelve (12) months following commencement of the Subfranchisor's operations and, at Franchisor's option, indefinitely in Franchisor's sole discretion or upon a default under this Agreement which remains uncured beyond all applicable notice and cure periods (an "Event of Default").
Unless otherwise directed by Franchisor, Subfranchisor will collect and deposit all Client payments into an escrow account designated by Franchisor, at an acceptable banking facility designated or approved in writing by Franchisor (the "Anago Escrow Account"), until the time for distribution to Subfranchisor and later distribution to its Unit Franchisees.
After Subfranchisor receives a Client payment and deposits that payment into the designated Anago Escrow Account, Franchisor will: (i) distribute to Subfranchisor once per week, on Wednesday, the Client Receipts deposited into the Anago Escrow Account during the prior week (with a week running from Sunday through Saturday) which have cleared, less any funds owed to Franchisor or its affiliates for Royalties, Administrative Support fees, Insurance fees, accounting fees, service fees (bank fees, credit card fees, or other fees relating to billing and collections), advertising fees, late fees, temporary management fees, interest, and any other payments due to Franchisor its affiliates hereunder; and (ii) Franchisor will hold back in the Anago Escrow Account a portion of the funds sufficient to cover amounts Subfranchisor owes to it under this Agreement, as described in subsection (i).
Subfranchisor is solely responsible for payment to its Unit Franchisees for services rendered to Clients, which payments should be made on the 20th day of each month following the month in which services were rendered, or as otherwise prescribed in its Unit Franchise Agreement, as authorized by Franchisor, and Subfranchisor will provide its Unit Franchisees with a statement detailing the previous month's accounting activity.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago's responsibilities regarding invoicing and collection of monies are specific to the type of franchise (Unit or Subfranchise) and the agreements in place. For Unit Franchisees, Anago acts as an agent to directly invoice accounts assigned to the franchisee or those they've joined. Anago invoices these accounts monthly for services and supplies rendered by the franchisee. They also maintain revenue records for these accounts. Anago is authorized to withhold money due from servicing these accounts for fees like royalty fees, administration fees, advertising contributions, and other amounts owed to Anago.
For Unit Franchisees, Anago collects payments and mails the monies collected (less fees) to the franchisee between the 20th and 25th of each month following the service month. If an account doesn't pay, the franchisee bears the loss unless Anago has guaranteed payments in writing. Anago can take action to enforce payment at the franchisee's discretion and expense. Anago can also initiate action to recover unpaid amounts of their own fees. Unit Franchisees must remit all client payments to Anago, and failure to do so results in a $100 handling fee per payment.
For Subfranchisors, the franchisor will send monthly invoices to every client account serviced by the Subfranchisor's Unit Franchisees for up to twelve months following commencement of the Subfranchisor's operations and, at Franchisor's option, indefinitely in Franchisor's sole discretion or upon a default. Subfranchisors are required to collect and deposit all client payments into a designated escrow account. The franchisor distributes client receipts deposited into this account weekly, less any funds owed to the franchisor for various fees. The subfranchisor is responsible for paying its Unit Franchisees for services rendered to clients.