When is the C-Fee payable for an Anago franchise?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
ditional Account We offer to You and You accept having Gross Monthly Billing of $3,001 and above the C-Fee is repayable as negotiated by the parties as stated in the Account Assignment & Assumption Agreement. For example, if for any reason, the Client contract is not renewed after 12 months, and the financing was for 18 months, the remaining balance would be immediately due.
(iv) If the C-Fee is paid in full at the time of assumption, the C-Fee will be reduced by 15%.
(v) If the C-Fee is paid in full within 90 days of assumption, no interest charges will accrue.
(vi) The C-Fee of One-Time Services, Initial Cleans or Extra Work on additional Accounts We secure will be equal to 20% of the gross fee charged to the Client and will not be financed.
(vii) If You voluntarily relinquish an additional Account that You have assumed, after 10 business days' written notice to Us of Your intent to relinquish, any C-Fee payment still due will be canceled if We are able to have another Unit Franchisee assume the Account and the Client does not cancel within 60 days after the transfer date; otherwise, the C-Fee remains due.
(viii) If You lose an additional Account for the reasons stated in either Subsections 2.1(c)(ii)-(iii) or if You cease service to the Account (for more than 2 days without at least 10 business days' written notice and Our consent) or if You abandon Your Anago Unit Franchise and the C-Fee was financed, the entire unpaid amount becomes immediately due upon loss of such Account or abandonment of Your Unit Franchise. If the C-Fee amount You owe after loss, transfer or abandonment of an Account cannot be precisely determined due to fluctuating monthly payments, then an average will be taken of the prior months for which You provided services to the additional Account before the time of loss, transfer or abandonment.
(ix) C-Fee payments are discontinued if the Client cancels the service contract through no fault of yours. C-Fees are non-refundable.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the timing of C-Fee payments depends on several factors. Generally, the C-Fee is associated with additional accounts secured through Anago's assistance. The standard C-Fee for one-time services, initial cleans, or extra work on additional accounts is 20% of the gross fee charged to the client and is not financed.
An Anago franchisee can receive a 15% reduction in the C-Fee if it is paid in full at the time of assumption. If the C-Fee is paid in full within 90 days of assumption, no interest charges will accrue. However, if a franchisee loses an additional account due to specific reasons, ceases service without proper notice, or abandons their Anago Unit Franchise, the entire unpaid C-Fee amount becomes immediately due. If the C-Fee amount cannot be precisely determined due to fluctuating monthly payments, Anago will calculate an average of the prior months' payments to determine the amount due.
C-Fee payments are discontinued if the client cancels the service contract through no fault of the franchisee. Credits for C-Fee payments may be made if the client cancels the service contract within 180 days from the date of commencement, with any credit limited to 15% of paid C-Fees and subject to Anago's discretion, provided the cancellation was not the franchisee's fault. All C-Fee credits must be requested in writing within 30 days after termination of an Account. Accounts that must be transferred from a franchisee to another franchisee will incur the full month's C-Fee.
It is important to note that C-Fees are non-refundable, and the difference between the amount paid in C-Fees and any credit given is deemed earned by Anago. Franchisees should be aware of these conditions to manage their financial obligations and potential liabilities related to C-Fees.