Under what conditions can the Franchisor of Anago elect to assume invoicing indefinitely?
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. Additi
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago may elect to assume the processing of client invoices and unit franchisee statements for an indefinite period under two specific conditions. First, Anago can assume processing upon a default of the Subfranchise Agreement. Second, Anago can assume processing at the request of the subfranchisor.
If Anago assumes the processing of invoices and statements, the subfranchisor will incur specific fees. These fees include a monthly accounting fee, which is the greater of $1,000 or 1% of monthly gross revenues, plus the cost of postage. Additionally, Anago will charge the subfranchisor a $25 accounting fee per Unit Franchisee monthly statement.
These accounting fees will be deducted from the amounts due to the subfranchisor during the week the processing costs were incurred. This arrangement ensures that Anago is compensated for the administrative burden of handling invoicing and statements, while also potentially increasing costs for the subfranchisor if they are in default or request Anago to take over these responsibilities.