What is the amount of the non-compliance fee charged by Anago for late reports?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee 1 | Amount | Due Date 2 | Remarks |
|---|---|---|---|
| Supplier Testing Fee | Reimbursement of our reasonable costs of the inspection and the actual cost of the testing. | Immediately upon receipt of invoice. | If you propose to purchase or lease any equipment, supplies, advertising materials, or other products or services from an unapproved supplier, you must first submit to us a written request for approval, or request the supplier to do so itself. We have the right to require, as a condition of our approval, that our representatives be permitted to inspect the supplier's facilities, and that samples from the supplier be |
| Audit | Varies | Immediately upon receipt of invoice. | If an audit by us discloses an understatement of Gross Revenues in excess of 2% for any period or periods, you will be required to reimburse us for all costs of the audit in addition to paying past due Royalties, Advertising Fees (when imposed) plus any late |
| Insurance | Actual cost to maintain your insurance policy (Insurance Premium) | Monthly on the 20 th day of each month. | You are required to be covered under the Anago National Insurance program during the entire Term. This will be paid to us or our designee. You will pay the actual cost to maintain your insurance policy (Insurance Premium). Premiums for any such insurance plans are determined by the insurance carrier, and may vary by state, may change from year to year, and are based on your experience modifier and other factors as determined by the insurance carrier. The plans may be subject to change, modification, and/or cancellation. You are responsible for payment of all deductibles, should a claim arise. |
| Non-compliance fees | $100 per day, per report, late fee for failing to submit reports on time. | Immediately upon notice of violation | If you fail to submit required monthly reports on time. Or fail to deposit client re |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the non-compliance fee for failing to submit reports on time is $100 per day, per report. This fee is levied if a franchisee fails to submit required monthly reports on time or fails to deposit client receipts properly into the required bank accounts. The fee is due immediately upon notice of the violation.
This daily fee can quickly add up, creating a significant financial burden for Anago franchisees who are late in submitting their reports. For example, if a report is 10 days late, the franchisee would owe $1,000 in non-compliance fees. This highlights the importance of adhering to Anago's reporting deadlines and banking procedures.
Franchisees should ensure they have systems in place to track and submit reports promptly to avoid incurring these fees. It is also crucial to understand the specific requirements for depositing client receipts into the designated bank accounts, as non-compliance in this area also triggers the same daily fee. This fee structure is designed to incentivize timely and accurate reporting, which is essential for Anago's overall financial management and compliance.