By what day of the month must an Anago subfranchisor pay the monthly royalty fee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
reement, except if Subfranchisor is not accepted by Franchisor at its home office within 30 days from the Agreement Date or except as provided in Subsection 2.1(b).
Section 4.2 - Ongoing Payments to Franchisor
- (a) Royalty Fee. During the Term, Subfranchisor will pay to Franchisor a monthly royalty fee ("Royalty Fee") by the 20th day of each month equal to 5% of the previous calendar month's Gross Revenues. Subfranchisor acknowledges and agrees that its payment of Royalty Fees to Franchisor is subject to a monthly minimum equal to the greater of: (i) 5% of the previous month's Gross Revenues generated by Subfranchisor and the
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a subfranchisor is required to pay a monthly royalty fee to Anago by the 20th day of each month. This royalty fee is calculated as 5% of the previous calendar month's gross revenues.
In addition to the percentage-based royalty, Anago mandates a minimum monthly royalty payment. This minimum is the greater of 5% of the previous month's gross revenues or a fixed amount. The fixed amount starts at $1,500 per month beginning in the 13th month of operation. Each year thereafter, this minimum monthly royalty increases by an additional $1,500.
This payment schedule and structure are important for prospective Anago subfranchisors to consider. They need to ensure they have sufficient cash flow to meet the royalty obligations, especially the increasing minimums. Failing to remit payments on time could result in penalties or even a breach of the subfranchise agreement.