For Anago, when should the Subfranchisor make payments to its Unit Franchisees for services rendered to Clients?
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 its 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 payments can be made as prescribed in the Unit Franchise Agreement, provided that the Franchisor authorizes this alternative payment schedule.
In addition to making payments, the Subfranchisor must also provide its Unit Franchisees with a statement. This statement should detail the accounting activity from the previous month, giving the Unit Franchisees a clear record of their earnings and any associated transactions.
This arrangement ensures that Unit Franchisees are paid in a timely and transparent manner for their services. However, the Subfranchisor has some flexibility in setting the payment schedule if it is outlined in the Unit Franchise Agreement and approved by Anago. This flexibility could be beneficial for managing cash flow or aligning payment schedules with other business operations.