For Anago, who does each Unit Franchisee appoint as their agent for billing and collection?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Invoicing. Under the Unit Franchise Agreements, each Unit Franchisee appoints Subfranchisor as its agent for purposes, throughout the term of the Unit Franchise Agreement, of billing and collecting for services the Unit Franchisee provides to its Clients. Subfranchisor hereby delegates to Franchisor the performance of those services, utilizing the NBDS System or such other program as designated by Franchisor as described in this Section 2.4. Franchisor will send monthly invoices to every Client account serviced by Subfranchisor's Unit Franchisees for up to twelve (12) months following commencement of the Subfranchisor's operations and, at Franchisor's option, indefinitely in Franchisor's sole discretion or upon a default under this Agreement which remains uncured beyond all applicable notice and cure periods (an "Event of Default"). Should: (a) Subfranchisor not assume the invoicing after the first twelve (12) months following commencement of operations; or (b) Franchisor elect to assume invoicing upon an Event of Default, Franchisor may charge Subfranchisor the fees set forth below in Section 2.4(h).
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, each Unit Franchisee appoints the Subfranchisor as their agent for billing and collection services for the services that the Unit Franchisee provides to clients. The Subfranchisor then delegates these services to Anago Franchisor, utilizing the NBDS System or another program designated by the Franchisor.
Anago Franchisor will send monthly invoices to every client account serviced by the Subfranchisor's Unit Franchisees for up to 12 months following the commencement of the Subfranchisor's operations. After this initial period, the Franchisor has the option to continue invoicing indefinitely or upon the Subfranchisor experiencing an uncured default. If the Subfranchisor does not assume invoicing after the initial 12 months, or if Anago Franchisor elects to assume invoicing due to a default, the Franchisor may charge the Subfranchisor fees as outlined in Section 2.4(h) of the FDD.
This arrangement ensures that Anago maintains control over the billing and collection process, at least initially, and can step in to manage these functions in case of a Subfranchisor default. For a prospective franchisee, this means they rely on the Subfranchisor and Franchisor for managing invoices and collections, which could reduce administrative burdens but also means less direct control over cash flow. It is important for prospective franchisees to understand the fees associated with this service, especially if the Franchisor assumes processing due to a default.