What are the fees associated with an 'Advance Payment Fee' for an Anago franchisee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
sed in this Agreement, the Exhibits attached to this Agreement and all other documents signed incidental to this Agreement and any Exhibits to those documents, the following terms have the following meanings:
- "Account" means a Client or Current Client.
- "**Account Tra
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, an 'Advance Payment Fee' is incurred when Anago advances funds to a franchisee before they are due. If Anago advances collected funds to a franchisee, but the funds are not yet payable, the franchisee will pay a processing fee of $25.
If Anago loans uncollected funds to a franchisee, the franchisee will pay a processing fee of $25 plus interest. The interest rate on the loaned amount is 18% per annum until the funds are fully paid back to Anago.
This fee structure means that Anago franchisees need to carefully manage their cash flow and payment schedules to avoid incurring these additional fees. Accurately forecasting revenue and expenses can help franchisees minimize their reliance on advanced or loaned funds from Anago, thereby avoiding the processing fees and interest charges.