What must the Anago Subfranchisee provide to their Unit Franchisees along with their payment?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
be responsible for the payment of sales tax, as applicable. Payments will be made from your operating account. You will pay your Unit Franchisees directly by mail 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 we authorize, and will provide your Unit Franchisees with a statement detailing the previous month's accounting activity.
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, Subfranchisees are required to pay their Unit Franchisees directly, typically by mail on the 20th of each month following the month in which services were provided, unless otherwise specified in the Unit Franchise Agreement or as authorized by Anago. Along with this payment, the Subfranchisee must also furnish the Unit Franchisees with a statement that details the accounting activity from the previous month.
This requirement ensures transparency and accountability in the financial transactions between the Subfranchisee and their Unit Franchisees. By providing a detailed statement, Unit Franchisees can clearly understand how their earnings are calculated and can verify the accuracy of the payments they receive. This practice helps to foster trust and maintain a positive working relationship within the Anago franchise system.
Furthermore, Anago requires Subfranchisees to provide them with a copy of all statements issued to Unit Franchisees by the 25th of each month. This allows Anago to monitor the financial interactions between Subfranchisees and Unit Franchisees, ensuring compliance with the franchise agreement and maintaining the integrity of the Anago system. This oversight helps Anago to address any potential discrepancies or issues promptly, protecting the interests of all parties involved.