Under what condition can an Anago subfranchisee delegate their role as the Unit Franchisees' billing and collections agent to Anago?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
chise Rights Agreement immediately deduct from amounts paid to you on your client receipts, any amounts owed us.
- (v) Billing and Collection Procedures Upon Your Request. You may, from time to time, ask us to allow you to delegate your role as your Unit Franchisees' billing and collections agent. If, in our sole discretion, we accept that delegation and assume the processing of client invoices and Unit Franchise statements, we may do so for an indefinite period. We will charge you a monthly accounting fee equal to the greater of $1,000 or 1% of your monthly Gross Revenues, plus the cost of postage. We will also charge you a $25.00 accounting fee per Unit Franchisee monthly state
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a subfranchisee may request that Anago take over the role of billing and collections agent for their Unit Franchisees. However, this delegation is not guaranteed. Anago must, in its sole discretion, accept the delegation. If Anago agrees to assume the processing of client invoices and Unit Franchise statements, it may do so for an indefinite period.
If Anago accepts this delegation, the subfranchisee will incur specific fees. Anago will charge a monthly accounting fee, which is the greater of $1,000 or 1% of the subfranchisee's monthly Gross Revenues, plus the cost of postage. Additionally, Anago will charge a $25.00 accounting fee for each Unit Franchisee monthly statement.
These accounting fees will be deducted from the amounts due to the subfranchisee during the week the processing costs were incurred. This arrangement provides a subfranchisee with the option to offload billing and collection responsibilities, but it comes at a defined cost that must be factored into their financial planning.