Under what condition can Anago initiate action on its own to recover unpaid amounts?

According to Anago's 2025 Franchise Disclosure Document, Anago can initiate action on its own to recover unpaid amounts of its fees if the client has not paid as agreed. This means that Anago retains the right to pursue collections on its own behalf for fees that it would have received had the client paid according to the agreed-upon terms.

This clause is significant for prospective franchisees because it clarifies Anago's role in managing and recovering its own fees. While Anago will invoice clients and maintain revenue records, the franchisee authorizes Anago to withhold money due to them for various fees and costs. However, Anago also reserves the right to independently pursue unpaid amounts that directly affect its own revenue, ensuring that it can protect its financial interests.

This arrangement highlights a potential benefit for franchisees, as Anago takes on the responsibility of invoicing and record-keeping. However, franchisees should be aware that they bear the loss of nonpayment from clients unless Anago has provided a written guarantee of payment. Franchisees should also clarify with Anago the specific procedures and conditions under which Anago will initiate action to recover unpaid amounts, as well as the potential impact on the franchisee's relationship with the client.