For Anago, in whose name should all Client checks and payments be made payable?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
l not be commingled with any other funds of Franchisor, or of any other of Franchisor's subfranchisors' client payments. Subfranchisor will set up a separate operating account in its corporate name d/b/a "Anago of [Insert Area]". All Client checks and payments shall be made payable in the name of the Anago Escrow Account, and Subfranchisor must deposit all client checks and payments received into such account on a daily basis.
- (c) Distribution of Client Receipts. After Subfranchisor receives a Client payment and deposits that payment into the designated Anago Escrow Account, Franchisor will: (i) distribute to Subfranchisor once per week, on Wednesday, the Client Receipts deposited into the Anago Escrow Account during the prior week (with a week running from Sunday through Saturday) which have cleared, less any funds owed to Franchisor or its affiliates for Royalties, Administrative Support fees, Insurance fees, accounting fees, service fees (bank fees, credit card fees, or other fees relating to billing and collections), advertising fees, late fees, temporary management fees, interest, and any other payments due to Franchisor its affiliates hereunder; and (ii) Franchisor will hold back in the Anago Escrow Account a portion of the funds sufficient to cover amounts Subfranchisor owes to it under this Agreement, as described in subsection (i). Subfranchisor will be responsible for the payment of sales tax, as applicable, which payments will be made from Subfranchisor's operating account. Subfranchisor is solely responsible for payment to its Unit Franchisees for services rendered to Clients, which payments should be made on the 20th day of each month following the month in which services were rendered, or as otherwise prescribed in its Unit Franchise Agreement, as authorized by Franchisor, and Subfranchisor will provide its Unit Franchisees with a statement detailing the previous month's accounting activity. Subfranchisor will send to Franchisor daily, by facsimile or electronic mail, items for all invoicing activity to each Client serviced and all supplies and equipment sold by Subfranchisor's Unit Franchisees for that day (for at least the first 12 months). Subfranchisor will provide to Franchisor, by the 25th day of each month, a copy of all statements issued to its Unit Franchisees during the month in the form and manner designated by Franchisor. Franchisor at its option, will require Subfranchisor to accomplish this via hard copies sent by mail, courier, or by electronic data transmission via a modem or Internet access installed within Subfranchisor's computer.
- (d) Unintentional Payments. If any client payments are sent directly from the client to Subfranchisor's or a Unit Franchisee's operating Account, Subfranchisor will immediately notify
Franchisor of the payment receipt with the corresponding deposit slip.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, all client checks and payments must be made payable to the Anago Escrow Account. The subfranchisor is then required to deposit all client checks and payments received into this Anago Escrow Account on a daily basis.
This process ensures that all client payments are directed to a central account managed or overseen by Anago. This allows Anago to monitor and control the flow of funds, ensuring that royalties, administrative fees, and other payments due to Anago are properly deducted before the remaining funds are distributed to the subfranchisor. The franchisor distributes client receipts deposited into the Anago Escrow Account weekly, specifically on Wednesdays, for the prior week's cleared payments (Sunday through Saturday), after deducting any owed amounts.
Furthermore, the Anago Escrow Account is exclusively for client payments and their distribution to the subfranchisor, preventing commingling with other funds. If any client payments are unintentionally sent directly to the subfranchisor's or a unit franchisee's operating account, the subfranchisor must immediately notify Anago and deposit the payment into the Anago Escrow Account for processing. Failure to deposit payments into the Anago Escrow Account can result in Anago assuming all billing and invoicing responsibilities, with clients being directed to forward all invoice payments directly to Anago.