What costs are covered under Anago's Deficiencies fee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
f you fail the Anago Training Program, you must |
| Type of Fee1 | Amount | Due Date2 | Remarks |
|---|---|---|---|
| attend retraining classes in the areas the training officer feels are necessary for you to successfully complete the Anago Training Program for Subfranchisors. | |||
| Administrative Support Fee | 2% of the Gross Revenues collected by the Subfranchisor. | Monthly on the 20th day of each month | This fee is for continued assistance we may provide to you, including advisory assistance in the promotion of Unit Franchises, sale of clients, and referral of leads, additionally, it includes a support phone line and email ticketing system for general use and troubleshooting within NBDS. |
| Billing and Collection Fees | An invoice servicing fee of the greater of $1,000 or 1% of your Gross Revenues and $25 for each unit franchise statement (Waived for first 12 months. See Remarks.). | Monthly on the 20th day of each month | Under the Unit Franchise Agreement, your Unit Franchise will appoint you as its billing and collections agent. For 12 months after you begin operating and indefinitely after an event of default, you will delegate that responsibility to us. |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the deficiencies fee covers the reimbursement of Anago's costs for performing the subfranchisee's obligations. This fee is incurred if the subfranchisee fails to meet their obligations under the Subfranchise Rights Agreement, prompting Anago to step in and fulfill those responsibilities. The fee is due immediately upon receipt of an invoice from Anago.
In practical terms, this means that if an Anago subfranchisee neglects or is unable to perform certain duties outlined in their agreement, Anago has the right, but not the obligation, to take over those duties. The subfranchisee will then be responsible for reimbursing Anago for all expenses incurred in the process. These costs can vary widely depending on the nature of the obligation and the resources required to fulfill it.
Prospective Anago subfranchisees should carefully review the Subfranchise Rights Agreement to fully understand their obligations and the potential circumstances that could lead to Anago performing those obligations on their behalf. Understanding these obligations and potential costs is crucial for budgeting and managing the subfranchise effectively. It is also important to note that Anago is not obligated to step in, so the subfranchisee should be prepared to handle all responsibilities outlined in the agreement.