Is the initial fee for an Anago subfranchise refundable?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Initial Fees / Subfranchise Fee Deposit
In order to apply to become our master franchisee or subfranchisor, you must submit to us a completed application and pay the Initial Fee. The Initial Fee to obtain Anago Subfranchise Rights is $98,000 for the counties and/or cities that will comprise your territory. The Initial Fee is payable to us in full upon signing the Subfranchise Rights Agreement and isfully earned and non-refundable. However, if we do not offer you the right to enter into an Anago Subfranchise Rights Agreement or we offer you the right but you fail to enter into the agreement, in either case, within 30 days following your execution of a deposit agreement (the "Deposit Agreement") in the form attached as Exhibit C to this Disclosure Document, we will refund the amount you paid when you signed the Deposit Agreement, less any amounts as described in the Deposit Agreement. You are responsible to pay any sales, use or other taxes (other than our income tax) relating to the purcha
Source: Item 5 — INITIAL FEES (FDD page 12)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the initial subfranchise fee of $98,000 is generally non-refundable once the Subfranchise Rights Agreement is signed. This fee is considered fully earned by Anago upon signing the agreement to cover administrative costs and lost opportunities.
However, there are specific circumstances under which a refund may be possible. If Anago does not offer the prospective subfranchisee the right to enter into a Subfranchise Rights Agreement, or if Anago offers the agreement but the prospective subfranchisee fails to enter into it within 30 days of signing a deposit agreement, Anago will refund the amount paid under the Deposit Agreement, less any amounts described in the Deposit Agreement.
It is important for potential Anago subfranchisees to carefully review the Deposit Agreement (Exhibit C) to understand the conditions under which a refund of the initial fee deposit may be obtained. Additionally, Item 5 and Article 4, Section 4.1 of the Subfranchise Rights Agreement outline the specific conditions regarding the non-refundability of the initial fee and the limited exceptions.