When should the Anago Subfranchisor make payments to its Unit Franchisees for services rendered?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the Subfranchisor is responsible for paying Unit Franchisees for services rendered to clients. These payments should be made on the 20th day of each month following the month in which the services were provided. Alternatively, the payment schedule can be as prescribed in the Unit Franchise Agreement, provided it is authorized by Anago.
In addition to making payments, the Subfranchisor must also furnish its Unit Franchisees with a statement detailing the previous month's accounting activity. This ensures transparency and helps the Unit Franchisees understand the basis for their payments.
It's important for prospective Subfranchisors to understand these payment terms, as they directly impact cash flow management and relationships with Unit Franchisees. Subfranchisors should review the Unit Franchise Agreement carefully to understand any specific payment terms that may differ from the standard schedule. Maintaining accurate records and adhering to the payment schedule is crucial for compliance and maintaining good standing with both Anago and the Unit Franchisees.