What does 'C-Fee' refer to in the context of an Anago franchise?

According to Anago's 2025 Franchise Disclosure Document, the C-Fee is defined as the fee stated in Subsection 3.1(f) of the agreement. This fee is relevant when Anago secures accounts through contracts with clients and assigns these accounts to the franchisee. Payments from clients for these accounts are sent directly to Anago, who then distributes the gross monthly revenues to the franchisee after deducting fees, including the C-Fee, as outlined in Section 3.1, and any other liabilities the franchisee may have to Anago.

Several conditions affect the C-Fee. For instance, if the C-Fee is paid in full at the time of assumption, it will be reduced by 15%. If paid within 90 days, no interest accrues. The C-Fee for One-Time Services, Initial Cleans, or Extra Work on additional Accounts secured by Anago is 20% of the gross fee charged to the client and cannot be financed. If a franchisee voluntarily relinquishes an additional account with proper notice, any remaining C-Fee payments will be canceled if Anago can have another franchisee assume the account and the client does not cancel within 60 days after the transfer date.

However, the C-Fee remains due under certain conditions. If a franchisee loses an additional account due to specific reasons or ceases service without proper notice, or abandons their Anago Unit Franchise and the C-Fee was financed, the entire unpaid amount becomes immediately due. If the C-Fee amount owed after loss, transfer, or abandonment cannot be precisely determined, an average of prior months' payments will be taken. C-Fee payments are discontinued if the client cancels the service contract through no fault of the franchisee. C-Fees are non-refundable, but credits may be issued if the client cancels within 180 days from the start date, with credit limited to 15% of paid C-Fees at Anago's discretion, provided the cancellation was not the franchisee's fault.

Additional stipulations include monthly C-Fees based on square footage cleaned for buildings with varying occupancy levels and potential additional C-Fees for increased services requested by an account. No C-Fee is assessed if the franchisee obtains an account solely through their own marketing efforts without regional office assistance. Partial C-Fees at 50% may be assessed if a regional office representative assists with bid pricing or closing the sale. All C-Fee credits must be requested in writing within 30 days after an account's termination, and accounts transferred from one franchisee to another will incur the full month's C-Fee.