If an Anago Subfranchise Rights Agreement is not signed, what portion of the deposit is refunded?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
using
the same authorization that Subfranchisor grants Franchisor with respect to payment of Royalty and other fees.
ARTICLE 4 - SUBFRANCHISE FEE AND COMPENSATION
Section 4.1 - Subfranchise Fee
Subfranchisor will pay to Franchisor a Subfranchise Fee in the amount of $98,000. The Subfranchise Fee is fully earned by Franchisor and is non-refundable upon signing this Agreement in consideration for the administrative and other costs incurred by Franchisor and opportunities lost or
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Subfranchise Fee of $98,000 is generally non-refundable once the agreement is signed. This fee compensates Anago for administrative costs and lost opportunities resulting from granting the subfranchise rights.
However, there are two specific exceptions where a refund may be possible. First, if Anago does not accept the subfranchisee at its home office within 30 days from the agreement date, a refund may be granted. Second, a refund may be available as provided in Subsection 2.1(b), although the details of this subsection are not provided in the excerpt.
Therefore, outside of these two specific scenarios, the $98,000 Subfranchise Fee is non-refundable, meaning that if the Subfranchise Rights Agreement is not signed for other reasons, the franchisee will likely not receive a refund of their initial fee.