What was the amount of royalties included in revenue for Anago for the year ending December 31, 2024?

According to Anago's 2025 Franchise Disclosure Document, royalties included in revenue for the year ending December 31, 2024, totaled $6,614,233. Anago receives approximately 5% of recurring cleaning contract sales as royalties. This figure represents the income Anago earned from its franchisees' sales, demonstrating a significant portion of the company's revenue stream.

For a prospective franchisee, understanding the royalty structure is crucial. The 5% royalty on recurring cleaning contract sales means that a portion of each sale made by the franchisee is remitted to Anago. This ongoing payment is in exchange for the continued use of the Anago brand, operational support, and access to the franchise system. The reported royalty amount of $6,614,233 indicates a substantial network of franchisees generating sales, which in turn contributes to Anago's revenue.

It's important for potential franchisees to consider how these royalty payments will impact their profitability. While the royalty provides Anago with a steady income stream, franchisees need to ensure their pricing and cost structure allow for a sustainable profit margin after deducting royalties. Reviewing the historical royalty figures, such as the $5,840,390 in 2023 and $4,863,616 in 2022, can provide insights into the growth and stability of Anago's franchise network and the potential for future earnings.