When are Anago royalty fees collected each month?

According to Anago's 2025 Franchise Disclosure Document, royalty fees are collected once a month, specifically on or around the 25th of each month. However, the process involves a daily deposit of client receipts into a designated escrow account, as detailed in Item 11 of the FDD. From this escrow account, Anago makes weekly distributions to the franchisee, after deducting estimated royalty fees, administrative support fees, billing and collection fees, and any other outstanding amounts owed to Anago under the Subfranchise Rights Agreement.

This collection method ensures that Anago receives its royalty fees in a timely manner while also managing the cash flow for the franchisee. By deducting the fees directly from the escrow account, Anago reduces the risk of late or non-payment. The weekly distributions, less the fees, provide the franchisee with a regular income stream, which can help with managing their operational expenses.

It's important for prospective Anago franchisees to understand the implications of this system. While the royalty fee is technically collected around the 25th of each month, the daily deposit of client receipts and weekly distributions mean that a portion of the revenue is allocated to Anago throughout the month. Franchisees should carefully review Item 11 of the FDD to fully understand the escrow account procedures and ensure they are prepared to manage their finances accordingly. Additionally, franchisees should be aware of the other fees, such as administrative support and billing and collection fees, that are also deducted from the escrow account.