What is the deadline for entering into an Anago Subfranchise Rights Agreement after executing the Deposit Agreement to be eligible for a refund?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
However, if we do not offer you the right to enter into an Anago Subfranchise Rights Agreement or we offer you the right but you fail to enter into the agreement, in either case, within 30 days following your execution of a deposit agreement (the "Deposit Agreement") in the form attached as Exhibit C to this Disclosure Document, we will refund the amount you paid when you signed the Deposit Agreement, less any amounts as described in the Deposit Agreement.
Source: Item 5 — INITIAL FEES (FDD page 12)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if a prospective subfranchisee signs a Deposit Agreement but is not offered the right to enter into an Anago Subfranchise Rights Agreement, or if offered, fails to enter into the agreement, they may be eligible for a refund. To be eligible for this refund, the subfranchisee must not enter into the Anago Subfranchise Rights Agreement within 30 days following the execution of the Deposit Agreement.
This refund covers the amount paid when signing the Deposit Agreement, less any amounts as described in the Deposit Agreement itself. The initial fee to obtain Anago Subfranchise Rights is $98,000 for the counties and/or cities that will comprise the territory. This initial fee is payable in full upon signing the Subfranchise Rights Agreement and is fully earned and non-refundable once the agreement is signed beyond the 30-day window.
It is important for potential Anago subfranchisees to carefully consider this 30-day window. If there are any doubts or hesitations about proceeding with the franchise, it is crucial to address them promptly and make a decision within this timeframe to preserve the possibility of a refund. Franchisees should consult the Deposit Agreement for further details on potential deductions from the refund amount.