What must an Anago Subfranchisor report promptly to the Franchisor?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Subfranchisorshall promptly refer to Franchisor all inquiries Subfranchisor receives regarding the establishment of a franchise outside the Area.
- (d) Unintentional Payments.
If any client payments are sent directly from the client to Subfranchisor's or a Unit Franchisee's operating Account, Subfranchisor will immediately notify
Franchisor of the payment receipt with the corresponding deposit slip. Subfranchisor or Unit Franchisee, as applicable, will deposit the payment directly to the Anago Escrow Account for processing. Neither Subfranchisor nor any Unit Franchisee may deposit the payment directly into its own account. A deposit into any account other than the Anago Escrow Account is a default under this Agreement authorizing Franchisor to immediately assume all billing and invoicing, in which event all Clients in the Area will be notified to forward all invoice payments directly to Franchisor.
Subfranchisor will send to Franchisor daily, by facsimile or electronic mail, items for all invoicing activity to each Client serviced and all supplies and equipment sold by Subfranchisor's Unit Franchisees for that day (for at least the first 12 months).
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a Subfranchisor must promptly report two specific instances to Anago. First, the Subfranchisor must promptly refer all inquiries they receive regarding the establishment of a franchise outside of their designated area to Anago. This ensures that Anago maintains control over franchise expansion and can properly manage territory allocation. Second, if any client payments are unintentionally sent directly to the Subfranchisor's or a Unit Franchisee's operating account, the Subfranchisor is obligated to immediately notify Anago of the payment receipt and provide the corresponding deposit slip.
This immediate notification regarding unintentional payments is crucial because the Subfranchisor or Unit Franchisee must deposit the payment directly into the Anago Escrow Account for processing. Neither the Subfranchisor nor any Unit Franchisee is permitted to deposit the payment directly into their own account. According to the FDD, depositing payments into any account other than the Anago Escrow Account constitutes a default under the agreement, which authorizes Anago to immediately assume all billing and invoicing responsibilities. In such a case, all clients in the area will be notified to forward all invoice payments directly to Anago.
Furthermore, the Anago Subfranchisor is required to send daily reports to Anago. These reports, sent via facsimile or electronic mail, must include items for all invoicing activity to each client serviced and all supplies and equipment sold by the Subfranchisor's Unit Franchisees for that day. This daily reporting requirement is stipulated for at least the first 12 months of operation. This comprehensive reporting ensures that Anago maintains close oversight of financial transactions and operational activities within the Subfranchisor's territory, especially during the initial phase of the subfranchise.