Can Anago increase 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 a
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago has the right to increase the C-Fee under certain conditions. The C-Fee is a non-refundable fee that franchisees pay to Anago for the assignment and assumption of additional accounts. Currently, the C-Fee is equal to 3.0 times the Gross Monthly Billing of additional Accounts. However, Anago reserves the right to increase it to 5.0 times the Gross Monthly Billing of additional Accounts.
Anago must provide franchisees with 30 days' notice before increasing the C-Fee. This allows franchisees time to adjust their financial planning and assess the potential impact on their business. The C-Fee can be paid in full at the time of assumption of the account, or it can be financed by Anago at its sole discretion. The terms of financing vary depending on the Gross Monthly Billing of the additional account.
For example, for accounts with Gross Monthly Billing up to $2,000, the C-Fee is payable with 20% upon assumption of the account, and the balance is payable in 11 equal monthly installments including interest at 14% per year. For accounts with Gross Monthly Billing from $2,001 up to $3,000, the C-Fee is payable with 20% upon assumption of the account, and the balance is payable in 11 or 17 equal monthly installments including interest at 14% per year. For accounts with 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.
It is important for prospective franchisees to understand the terms and conditions of the C-Fee, as it can have a significant impact on their profitability. Franchisees should carefully consider their ability to pay the C-Fee, whether in full or through financing, before accepting additional accounts. They should also be aware of Anago's right to increase the C-Fee and plan accordingly. Understanding these financial obligations is crucial for making an informed decision about investing in an Anago franchise.