What is the estimate for initial start-up costs for an Anago franchise intended to cover?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expense1 | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Initial Fee / Subfranchise Fee2 | $98,000 | Lump Sum | Upon signing the Subfranchise Rights Agreement | Us |
| Legal and | $5,000 to | As arranged | As incurred | Attorneys and |
| Accounting3 | $15,000 | Accountants | ||
| Type of Expense1 | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
| Marketing and | $50,000 to | As incurred | As incurred | Suppliers |
| Advertising4 | $100,000 | |||
| Travel Expenses | $2,000 to | As arranged | As incurred | Third Parties |
| for training5 | $3,000 | |||
| Lease/Utility | $10,000 to | Lump Sum | As incurred | Third Parties |
| Deposits and Rent6 | $20,000 | |||
| Equipment, Fixtures, and Computer Systems7 | $15,000 to $25,000 | As arranged | As arranged | Us and Suppliers |
| Office Supplies8 | $1,000 to $2,000 | Lump Sum or installments/Lease | As incurred | Third Parties |
| Vehicle Operating | $3,000 to | As incurred | As incurred | Third Parties |
| Expenses9 | $6,000 | |||
| Insurance10 | $5,000 to $10,000 | Lump Sum | As arranged | Us |
| Miscellaneous | $10,000 to | As incurred | Before beginning | Third Parties |
| Start-up Costs11 | $20,000 | business | ||
| Additional Funds12 | $20,000 to $40,000 | As incurred | As incurred | Third Parties |
| TOTAL13 | $219,000 to $339,000 |
Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 19–22)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the estimated initial start-up costs range from $219,000 to $339,000. These costs encompass various expenses necessary to begin operating an Anago Subfranchise Rights Business. The estimate includes the initial subfranchise fee of $98,000, legal and accounting fees ranging from $5,000 to $15,000, and marketing and advertising expenses between $50,000 and $100,000. Travel expenses for training are estimated to be between $2,000 and $3,000. Lease and utility deposits and rent are projected to cost from $10,000 to $20,000. Equipment, fixtures, and computer systems are estimated to range from $15,000 to $25,000. Office supplies are estimated to cost between $1,000 and $2,000. Vehicle operating expenses are estimated to be between $3,000 and $6,000. Insurance costs are estimated to be between $5,000 and $10,000. Miscellaneous start-up costs are estimated to be between $10,000 and $20,000. Finally, additional funds are estimated to be between $20,000 and $40,000.
The initial investment covers a range of items, including the subfranchise fee, legal and accounting services, marketing and advertising, training-related travel, lease and utility deposits, rent, equipment, fixtures, computer systems, office supplies, vehicle operating expenses, insurance, miscellaneous start-up costs, and additional operating funds. The "Additional Funds" estimate is for a 6-month period to cover expenses like employee wages and taxes, insurance premiums, and rent. The FDD emphasizes the importance of having sufficient working capital to sustain the business during the initial phase, covering pre-opening expenses until the business generates enough cash flow.
Prospective Anago franchisees should note that these figures are estimates and the actual investment can vary based on factors such as local conditions, real property and equipment costs, personnel expenses, and the size and location of the area. The FDD recommends consulting with an experienced accountant or financial advisor to develop a detailed business plan and financial projections. Franchisees should also consider personal living expenses during the start-up period and ensure they have additional funds available to cover these costs. The FDD also notes that the subfranchisor is not required to operate a unit franchise, and the costs relate only to operating a master franchise, not a unit franchise.