When is the Anago Deficiencies fee due?

According to Anago's 2025 Franchise Disclosure Document, the Deficiencies fee is due immediately upon receipt of invoice. This fee is a reimbursement of Anago's costs for performing obligations that the subfranchisee has failed to fulfill under the Subfranchise Rights Agreement. This means that if an Anago subfranchisee does not meet their contractual obligations, Anago may step in to perform those obligations and then bill the subfranchisee for the associated costs.

This arrangement protects Anago by ensuring that essential duties are completed, even if the subfranchisee is unable or unwilling to perform them. However, it also places a financial burden on the subfranchisee, who must reimburse Anago for these expenses. The FDD specifies that Anago is not obligated to perform the subfranchisee's duties, but may choose to do so.

For a prospective Anago subfranchisee, this highlights the importance of understanding and meeting all obligations outlined in the Subfranchise Rights Agreement to avoid incurring these deficiency-related costs. It is also important to note that the amount of the deficiencies fee is variable, as it is tied to the actual costs Anago incurs in performing the subfranchisee's obligations. Therefore, the subfranchisee should maintain open communication with Anago to understand the nature and extent of any potential deficiencies and associated costs.