What are the fees and interest rate applied if Anago loans uncollected funds to 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, if Anago loans a franchisee uncollected funds, the franchisee will incur a processing fee of $25, in addition to interest accruing at an annual rate of 18% until the loan is fully repaid.
This means that if a franchisee needs access to funds before client payments have cleared, Anago offers the option to loan these funds. However, this convenience comes at a cost. The $25 processing fee might be a manageable expense, but the 18% annual interest rate could significantly increase the overall cost of borrowing, especially if the repayment period is extended.
Prospective franchisees should carefully consider their cash flow management and explore alternative financing options to avoid relying on these potentially expensive loans from Anago. Understanding the terms and conditions of such loans is crucial for maintaining financial stability within the franchise.