Under what circumstances will Anago pay a franchisee for one-time services?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
a period of one year after written notice of default, as described in Subsection 2.4(f), immediately deduct from amounts paid to Subfranchisor on its Client receipts, any amounts owed to Franchisor.
(h) Assumption of Processing. Franchisor, upon default of this Agreement or at the request of Subfranchisor, may, at its sole option, assume the processing of Client invoices and Unit Franchisee statements for an indefinite period. In such an event, Franchisor will charge Subfranchisor a monthly accounting fee equal to $1,000.00 or 1% of monthly Gross Revenues (whichever is greater), plus the cost of postage. Additionally, Franchisor will charge Subfranchisor a $25.00 accounting fee per Unit Franchisee monthly statement. The accounting fees will be withheld from amounts due to Subfranchisor in the week the costs for processing were incurred.
Section 2.5 - Continued Assistance and Support
- (a) Telephone Hotline. Franchisor will, at its discretion and subject to availability of Franchisor's personnel, maintain a telephone "hotline" for informational assistance for Subfranchisor and Unit Franchisees.
- (b) Advertising Fund and Public Relations Campaigns
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
Based on the 2025 FDD, the document does not explicitly state the circumstances under which Anago will pay a franchisee for one-time services. However, it does outline the financial relationship between the franchisor, subfranchisor, and unit franchisees, particularly concerning billing, collections, and handling of client payments. The FDD mentions that the subfranchisor acts as the agent for unit franchisees in billing and collecting for services provided to clients.
The franchisor, Anago, may assume the processing of client invoices and unit franchisee statements, especially upon default of the agreement or at the subfranchisor's request. In such cases, Anago will charge the subfranchisor a monthly accounting fee of $1,000.00 or 1% of monthly Gross Revenues (whichever is greater), plus postage costs. Additionally, Anago will charge the subfranchisor a $25.00 accounting fee per Unit Franchisee monthly statement. These fees are withheld from amounts due to the subfranchisor.
The FDD also discusses the right of offset, where Anago may deduct amounts owed to them from payments to the subfranchisor on client receipts for up to one year after written notice of default. It is important to note that the FDD stipulates that the subfranchisor is responsible for paying its employees' wages for services performed on an Anago account, and failure to do so constitutes a material default under the agreement. Since the document does not directly address payment for one-time services, prospective franchisees should seek clarification from Anago regarding specific scenarios and policies related to such payments.