What happens if an Anago franchisee selects to finance a portion of the Initial Fee?

According to Anago's 2025 Franchise Disclosure Document, if a franchisee finances a portion of the Initial Fee, several outcomes are possible depending on the franchisee's actions and Anago's decisions.

If the franchisee declines all Initial Business offered during the Initial Offering Period, Anago has the right to terminate the franchise agreement. Should Anago choose to terminate the agreement, Anago will retain all fees already paid by the franchisee, but the unpaid portion of the Initial Fee will be forgiven. However, if Anago does not terminate the agreement, the unpaid balance of the Initial Fee becomes immediately payable by the franchisee.

This arrangement carries significant implications for prospective Anago franchisees. Financing the Initial Fee introduces the risk of immediate repayment if Anago chooses not to terminate the agreement after the franchisee declines all business offers. Franchisees should carefully consider their ability to manage this potential debt and thoroughly evaluate the business opportunities presented during the Initial Offering Period. It is also important to understand the conditions under which Anago might choose to terminate the agreement versus demanding immediate payment of the financed amount.

The "Promissory Note" is the form signed to finance a portion of the franchise fee. The FDD does not specify the interest rate or repayment terms associated with the financing, so prospective franchisees should request full details on the financing terms, including interest rates, repayment schedules, and any associated fees, to fully understand the financial obligations involved.