When is the initial fee for an Anago franchise payable?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Offering Period of Initial Business. We will offer to You Accounts generating Gross Monthly Billing under the Program You select in Subsection 3.1(a) within the time period described, after the conditions described below have been satisfied. These Accounts will not be offered nor will the Initial Offering Period begin until You have satisfied the following conditions:
- (i) You have successfully completed the Anago Orientation Program having obtained an 85% or better on the business operations examination.
- (i) Our orientation officer has certified You as qualified to operate an Anago Unit Franchise.
- (ii) You have signed an orientation acknowledgment in the form attached as Exhibit 1 to this Agreement.
- (iiii) You have proof of all necessary business licenses, tax registrations, insurance and permits and have forwarded copies to Us.
- (iv) You have purchased, leased or currently own the major equipment described in Exhibit 5 and have furnished proof of purchase (for example, serial numbers and sales slips) to Us.
- (vi) You have formed your Corporation or LLC business entity. You have received registration of your fictitious name and EIN number and delivered copies to Our office.
- (vii) You have opened a commercial business checking account in the name of your Corporation or LLC business entity with your fictitious name listed and delivered a voided check to Our office.
You are under no obligation to accept Initial Business offered. Our obligation is only to "offer" Initial Business to You within the Initial Offering Period. Should You decline an offer, You must sign a written statement stating that You have declined the offer. A refusal to sign a statement of decline is a material breach under this Agreement and We then have the option of immediately terminating this Agreement. All declined offers will satisfy Our obligation to offer those portions of Initial Business within the Initial Offering Period. Should You decline all Initial Business offered during the Initial Offering Period, then We have the right to terminate this Agreement. If We terminate this Agreement, We will keep all fees You paid to Us and, if You financed a portion of the Initial Fee, the unpaid portion will be forgiven. If We do not exercise the right to terminate this Agreement and You have financed a portion of the Initial Fee,
the unpaid balance becomes immediately payable.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the initial business will be offered to the franchisee after certain conditions are met. These accounts will not be offered, nor will the initial offering period begin, until the franchisee has met specific requirements. These requirements include completing the Anago Orientation Program with a score of 85% or better on the business operations examination, being certified by the orientation officer as qualified to operate an Anago Unit Franchise, signing an orientation acknowledgment, providing proof of necessary business licenses, tax registrations, insurance, and permits, purchasing or leasing major equipment, forming a corporation or LLC business entity, receiving registration of a fictitious name and EIN number, and opening a commercial business checking account.
The franchisee is not obligated to accept the initial business offered, but Anago is only obligated to offer initial business within the initial offering period. If the franchisee declines an offer, they must sign a written statement. Refusal to sign this statement constitutes a material breach of the agreement, potentially leading to immediate termination. Declining all initial business offered during the initial offering period gives Anago the right to terminate the agreement.
If Anago terminates the agreement, they retain all fees paid, and any unpaid portion of the initial fee that was financed will be forgiven. However, if Anago does not terminate the agreement and a portion of the initial fee was financed, the unpaid balance becomes immediately payable. This means that while the initial fee isn't due upfront, securing the right to receive account assignments and begin operations is contingent on fulfilling several prerequisites. Failure to meet these conditions or declining the business offered can affect the payment terms and potentially lead to termination of the agreement.