Under what circumstances is an Anago franchisee required to reimburse Anago for costs and expenses, including attorneys' fees, related to compliance enforcement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
erienced field support and accompany You during the initial set-up and first-time cleaning of the very first Account You service pursuant to this Agreement.
SECTION 2.7 CONTINUED ASSISTANCE AND SUPPORT.
Upon the opening of Your Anago Unit Franchise, We will provide to You the following:
(a) Invoicing and Accounting Services. You have agreed to retain Us as Your agent to directly invoice the Accounts that are assigned to You or with respect to which You sign a joinder, and You will forward to Us amounts We are due from Client payments sent or given directly to You. We will invoice the Accounts monthly for the cost of services and supplies You render under the contract with the Account. We will invoice the Accounts we assign to You and maintain those revenue Records for You. You hereby authorize and direct Us to withhold, on Your behalf, any Money due You from servicing the Accounts We assign to You for Royalty Fees, Administration Fees, Advertising Contributions, C-Fees, Note Payments and all other amounts You owe to Us or Our Affiliates and out-of-pocket costs (including attorneys' fees and court costs) We incur in enforcing payment of Accounts on Your behalf. On or before the 20th day but no later than the 25th day of each month following the month in which services were rendered, We will mail to You all monies collected as recorded in the "Due Owner" column of the Owners Report (monthly statement), less monies due Us in accordance with this Agreement. If amounts billed to the Accounts We assign to You are unpaid, You will incur the loss of nonpayment except in
instances where We have guaranteed in writing payments to You. We will take action to enforce payment at Your discretion and expense. You hereby also authorize and direct Us, at Our sole discretion, to initiate action on Our own to recover unpaid amounts of Our fees that would have been collected if the Account had paid as agreed. It is an essential part of Our record keeping that all amounts due from the Client be remitted to Us so that We can maintain accurate and timely records on the amounts due You and the failure to remit any payments received by You will result in significant additional costs to Us. Consequently, failure to forward any funds You receive to the Anago office will result in a Handling Fee of $100 per payment You fail to forward to compensate for this additional expense.
We will only be responsible for the invoicing or collection of any monies due from Accounts assigned to you or to with respect to which you sign a joinder.
- (b) Supply Sources. We will continue to investigate supply sources for better pricing. Although You are not required to purchase any cleaning equipment or supplies from Us, We may be able to obtain lower prices on supplies and equipment and will direct You to that supplier without any obligation on Your part to purchase from them.
- (c) Field Visits. You understand and acknowledge that detail of the System is essential to the Anago brand and all Franchised Units in order to (i) develop and maintain quality brand standards, (ii) increase the demand for services sold by Franchised Units and (iii) protect Anago's name and goodwill. In an effort to further these interests We have the right to perform periodic quality control visits to each building You clean. All brand standards will be inspected and recommendations will be made to You. Our representative will operate from the local Anago office and will be available during normal business hours to answer questions and to assist with Unit Franchise operational questions.
- (d) Assistance with Business Development. We will, at Our discretion and subject to availability, continue to provide You with estimating expertise, custom proposals and references in order to assist development of Your Unit Franchise's business.
- (e) Assistance with Clients' Services. You understand that You are the primary contact for the customer with respect to service complaints and/or requests; however Our local office will accept service calls from Anago Accounts assigned to You and relay these service calls to You in a timely manner.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, there are several instances where a franchisee may be required to reimburse Anago for costs and expenses, including attorney's fees. One such instance is related to invoicing and accounting services. Anago withholds money due to the franchisee from servicing accounts for royalty fees, administration fees, advertising contributions, C-Fees, note payments, and all other amounts owed to Anago or its affiliates, including out-of-pocket costs such as attorneys' fees and court costs incurred in enforcing payment of accounts on the franchisee's behalf. Additionally, failure to forward any funds received by the franchisee to the Anago office will result in a Handling Fee of $100 per payment.
Another instance where reimbursement may be required is if the franchisee defaults on their obligations under the agreement. In such cases, Anago has the right, but not the obligation, to perform the franchisee's obligations and be reimbursed for the actual costs of doing so, along with accrued interest on overdue amounts. Interest accrues beginning on the 10th day after Anago demands reimbursement. Furthermore, if a franchisee breaches the terms of the agreement, Anago is entitled to an injunction restraining the breach and/or a decree of specific performance, along with recovery of reasonable attorneys' fees and costs incurred in obtaining equitable relief.
Finally, if a guarantor is involved, they guarantee the prompt payment and performance of all obligations of the subfranchisor under the Anago Agreements. These obligations include the payment of all debts, liabilities, and obligations, along with all costs of collection, compromise, and enforcement, including reasonable attorneys' fees. The guarantor also agrees to be personally bound by the provisions of the Franchise Agreement and any Anago Agreements, as if they were the subfranchisor. This means the guarantor could be liable for the franchisee's costs related to compliance enforcement.