factual

Under what condition related to contracted service to accounts can Anago receipts be impacted?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

At Our option, You will join in as a party to the Accounts secured by Us through a contract with a Client or those contracts will be assigned to You, in either case until the earlier of (a) the expiration or termination of this Agreement, (b) the contract with the Client is terminated, cancelled, or transferred, or (c) any situation arises whereby You errantly cease service to the Account. All Accounts will initially be between Us and the Client. All payments made by a Client under an Account will be sent directly to Us. You will receive the gross monthly revenues from the Account less the fees owed to Us as stated in Section 3.1 and any other liability You may have to Us. You are not permitted to offer, exchange or transfer Accounts that have been assigned to Your Unit Franchise or to which Your Unit Franchise has become a party by joinder except pursuant to a third-party's purchase of Your Anago business in accordance with this Agreement. You are not permitted to perform or invoice for janitorial or other services offered through Your Unit Franchise directly to those Accounts or to perform or invoice the Account for such services outside of the contract. You may however solicit and negotiate additional business with Clients assigned to You. All such additional business must be reflected on an amendment to the contract with the Account and will be subject to the provisions of the assignment of the contract, including Our appointment as Your agent for billing and collections related to the additional business. We will invoice for those services retaining Our fees earned under this Agreement. All Accounts We

assign to You or to which you become a party by joinder must be serviced in accordance with the times, frequency of service and cleaning specifications as determined by the Client.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

What This Means (2025 FDD)

According to Anago's 2025 Franchise Disclosure Document, a Unit Franchisee's receipts can be impacted if they errantly cease service to an account. In such a situation, Anago has the option to join in as a party to the accounts secured through a contract with a client, or those contracts will be assigned to the franchisee until a situation arises where the franchisee stops providing service to the account.

All accounts are initially between Anago and the client, and all payments are made directly to Anago. The Unit Franchisee then receives the gross monthly revenues from the account, minus fees owed to Anago. The franchisee is not allowed to offer, exchange, or transfer accounts assigned to them, except when a third party purchases the Anago business.

Furthermore, the franchisee cannot perform or invoice for services directly to those accounts outside of the contract. However, they can solicit and negotiate additional business with clients assigned to them, which must be reflected in an amendment to the contract and is subject to the same provisions, including Anago's role as the billing and collections agent. All accounts assigned to the franchisee must be serviced according to the times, frequency, and cleaning specifications determined by the client.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.