Can Anago finance the C-Fee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
u agree
to pay Us a fee for our efforts Currently 8% (5% for General Liability & 3% for Workers' Compensation) of monthly Gross Revenues, (subject to change in our discretion), plus $2.00 per invoice per Client serviced. If You do not obtain insurance through Us, You are still liable for a charge of 2% of Gross Revenues for insurance administration and policy verification.
- (f) C-Fees. For the assignment and assumption of any additional Accounts We offer to You and You accept under Subsection 2.1(b), You will pay to Us a non-refundable fee ("C-Fee"). The C-Fee is currently equal to 3.0 times the Gross Monthly Billing of additional Accounts, but we reserve the right, on 30 days' notice to You, to increase it to 5.0 times the Gross Monthly Billing of additional Accounts. The C-Fee and is payable in full at the time of the assumption of the Account or may be financed by Us at Our sole discretion under the Terms listed below in this Section 3.1(f) (Subsections (i) through (xv)).
- (i) For any additional Account We offer to You and You accept having Gross Monthly Billing of up to and including $2,000, the C-Fee is payable: (a) 20% upon assumption of the Account; and (b) the balance payable in 11 equal monthly installments including interest at 14% per year.
- (ii) For any additional Account We offer to You and You accept having Gross Monthly Billing from $2,001 up to and including $3,000, the C-Fee is payable: (a) 20% upon assumption of the Account; and (b) the balance payable in 11 or 17 equal monthly installments including interest at 14% per year. Should, for any reason, the Client contract not be renewed after 12 months, and the financing was for 17 months, the remaining balance is immediately due.
- (iii) For any additional Account We offer to You and You accept having Gross Monthly Billing of $3,001 and above the C-Fee is repayable as negotiated by the parties as stated in the Account Assignment & Assumption Agreement. For example, if for any reason, the Client contract is not renewed after 12 months, and the financing was for 18 months, the remaining balance would be immediately due.
- (
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the C-Fee, which is a non-refundable fee paid for the assignment and assumption of additional accounts, can be financed at Anago's sole discretion. The standard C-Fee is equal to 3.0 times the Gross Monthly Billing of the additional accounts, but Anago reserves the right to increase it to 5.0 times the Gross Monthly Billing with 30 days' notice.
For accounts with Gross Monthly Billing up to $2,000, franchisees must pay 20% of the C-Fee upon assumption of the account. The remaining balance is then payable in 11 equal monthly installments, which include interest at a rate of 14% per year. For accounts with Gross Monthly Billing between $2,001 and $3,000, the C-Fee payment structure is similar, requiring 20% upon assumption, with the balance payable in either 11 or 17 equal monthly installments, also with 14% annual interest. If a client contract is not renewed after 12 months and the financing was for 17 months, the remaining balance becomes immediately due.
For accounts with Gross Monthly Billing of $3,001 and above, the C-Fee repayment terms are negotiated between Anago and the franchisee, as detailed in the Account Assignment & Assumption Agreement. Similar to the previous tier, if the client contract isn't renewed after 12 months, and the financing period was longer (e.g., 18 months), the outstanding balance is immediately due. Anago also offers a 15% reduction in the C-Fee if it is paid in full at the time of assumption. Furthermore, no interest charges apply if the C-Fee is paid in full within 90 days of assumption.
It is important to note that the C-Fee for One-Time Services, Initial Cleans, or Extra Work on additional accounts secured by Anago cannot be financed and is equal to 20% of the gross fee charged to the client. Additionally, C-Fee payments are discontinued if the client cancels the service contract through no fault of the franchisee. However, credits for C-Fee payments are limited to 15% of paid C-Fees if the client cancels within 180 days from the commencement date, provided the cancellation is not the franchisee's fault. Franchisees should carefully consider these financing terms and conditions, as well as the potential risks associated with client cancellations and contract non-renewals.