What determines the amount of the initial fee for an Anago franchise?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
"Initial Business" means the amount of monthly gross billings from Accounts We offer to You based on the Program You selected.
- (a) Offering Period of Initial Business. We will offer to You Accounts generating Gross Monthly Billing under the Program You select in Subsection 3.1(a) within the time period described, after the conditions described below have been satisfied. These Accounts will not be offered nor will the Initial Offering Period begin until You have satisfied the following conditions:
- (i) You have successfully completed the Anago Orientation Program having obtained an 85% or better on the business operations examination.
- (i) Our orientation officer has certified You as qualified to operate an Anago Unit Franchise.
- (ii) You have signed an orientation acknowledgment in the form attached as Exhibit 1 to this Agreement.
- (iiii) You have proof of all necessary business licenses, tax registrations, insurance and permits and have forwarded copies to Us.
- (iv) You have purchased, leased or currently own the major equipment described in Exhibit 5 and have furnished proof of purchase (for example, serial numbers and sales slips) to Us.
- (vi) You have formed your Corporation or LLC business entity. You have received registration of your fictitious name and EIN number and delivered copies to Our office.
- (vii) You have opened a commercial business checking account in the name of your Corporation or LLC business entity with your fictitious name listed and delivered a voided check to Our office.
You are under no obligation to accept Initial Business offered. Our obligation is only to "offer" Initial Business to You within the Initial Offering Period. Should You decline an offer, You must sign a written statement stating that You have declined the offer. A refusal to sign a statement of decline is a material breach under this Agreement and We then have the option of immediately terminating this Agreement. All declined offers will satisfy Our obligation to offer those portions of Initial Business within the Initial Offering Period. Should You decline all Initial Business offered during the Initial Offering Period, then We have the right to terminate this Agreement. If We terminate this Agreement, We will keep all fees You paid to Us and, if You financed a portion of the Initial Fee, the unpaid portion will be forgiven. If We do not exercise the right to terminate this Agreement and You have financed a portion of the Initial Fee, the
unpaid balance becomes immediately payable."
"Initial Fee" means the fee described in Subsection 3.1(a).
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the determination of the initial fee is described in Subsection 3.1(a). The document also defines "Initial Business" as the amount of monthly gross billings from Accounts Anago offers to a franchisee based on the program they selected. The Accounts will not be offered nor will the Initial Offering Period begin until You have satisfied certain conditions.
These conditions include completing the Anago Orientation Program with a score of 85% or better on the business operations examination, certification by the orientation officer, signing an orientation acknowledgment, providing proof of necessary business licenses, tax registrations, insurance, and permits, purchasing or leasing major equipment, forming a Corporation or LLC business entity, and opening a commercial business checking account.
The FDD states that the franchisee is under no obligation to accept Initial Business offered, but declining an offer requires signing a written statement. Refusal to sign this statement constitutes a material breach of the agreement, potentially leading to termination. If a franchisee declines all Initial Business offered during the Initial Offering Period, Anago has the right to terminate the agreement, retaining all fees paid. However, if Anago terminates the agreement, and a portion of the Initial Fee was financed, the unpaid portion will be forgiven.
If Anago does not terminate the agreement and a portion of the Initial Fee was financed, the unpaid balance becomes immediately payable. This highlights the importance of understanding the terms of the franchise agreement and the financial obligations associated with accepting or declining Initial Business offers.