What are some examples of unanticipated costs in a business start-up for an Anago franchise?

According to Anago's 2025 Franchise Disclosure Document, there are several potential unanticipated costs that a new subfranchisee might encounter when starting their business. These include expenses such as licenses and permits, professional fees for accountants or additional fees for attorneys, and utility deposits. Anago estimates these miscellaneous start-up costs to range from $10,000 to $20,000 for the initial 6 months of operation. These costs are paid to third parties before beginning business.

Prospective Anago franchisees should be aware that these are just examples, and other unexpected costs may arise. It is important to budget for these potential expenses to avoid financial strain during the initial phase of the business. The FDD also highlights the importance of having adequate working capital to cover expenses such as employee wages and taxes, insurance premiums, and rent. Anago estimates that franchisees should have between $20,000 and $40,000 available as additional funds to cover these expenses for a 6-month period.

To prepare for these unanticipated costs, Anago recommends that prospective franchisees retain the services of an experienced accountant or financial advisor to develop a business plan and financial projections. This will help franchisees better understand their potential expenses and ensure they have sufficient funds to cover them. Additionally, franchisees are encouraged to create a personal/family cash flow budget to determine if they have enough personal revenue to support their family during the start-up period.