When is the Royalty Fee due for Anago franchisees?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
We will collect Royalty fees once a month on or around the 25th of each month.
However, you must deposit client receipts into the designated escrow account (as described in detail in Item 11) on a daily basis.
We will then make weekly distributions from the escrow account to you, less the estimated amount of Royalty fees, Administrative Support fees, Billing and Collection fees and any other amounts you owe us under the Subfranchise Rights Agreement which have accrued to us but have not yet been paid.
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, royalty fees are collected once a month, typically around the 25th of each month. However, there's a daily deposit requirement for client receipts into a designated escrow account, as detailed in Item 11 of the FDD.
Distributions from this escrow account are made weekly to the franchisee. These distributions are net of estimated royalty fees, administrative support fees, billing and collection fees, and any other outstanding amounts owed to Anago under the Subfranchise Rights Agreement. This means that while the formal royalty fee collection occurs monthly, Anago effectively collects these fees weekly through deductions from the escrow account distributions.
The FDD also specifies minimum royalty fees that increase over time. During months 13-24 of operation, the minimum royalty fee is $1,500 per month. Starting in month 24, the minimum monthly royalty fee increases by $1,500 every 12 months. This escalating minimum royalty fee structure incentivizes franchisees to grow their business and revenue over time.
Prospective franchisees should carefully review Item 11 in the FDD to fully understand the escrow account procedures and how these weekly distributions and deductions are handled. Understanding the timing and method of royalty fee collection is crucial for managing cash flow and financial planning as an Anago franchisee.