What is the Anago franchisee's obligation if they choose to utilize Anago's credit card processing services?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1 | Amount | Due Date2 | Remarks |
|---|---|---|---|
| Client Bid Schedule Deficiency Fee5 | $150 for each client bid below the required minimum that you failed to conduct. | In January of each year based on the prior 12-month averages or, at our option, in January and July, based on the prior 6-month averages | Due only if you fail to schedule and conduct the minimum number of marketing appointments with prospective cleaning clients that result in a bid for service (each a "Client Bid") |
| Banking Fees | Credit card charges of 4.75% per transaction unless our cost to provide you this service is greater, in which case you will be required to pay the higher cost. | Monthly | If you choose to utilize our credit card processing services, you will pay us the per transaction fee. This fee may exceed the amount actually charged to us by the banking institution, which may vary as determined solely by such banking institution. |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if a franchisee chooses to use Anago's credit card processing services, they are obligated to pay a per-transaction fee. This fee is 4.75% per transaction but may increase if Anago's cost to provide the service is higher. In that case, the franchisee will be required to pay the higher cost. This fee is due monthly.
It's important to note that the fee Anago charges the franchisee may exceed the amount Anago is actually charged by the banking institution. The banking institution determines the actual charges, which may vary. This means Anago could potentially profit from the credit card processing service beyond simply covering their costs.
Franchisees should carefully consider whether to use Anago's credit card processing services, taking into account the potential cost and whether they can obtain more favorable rates independently. It would be prudent to compare Anago's fees with those from other providers to make an informed decision. Understanding the potential variability in banking fees and how Anago determines its charges is also crucial for managing expenses.