Is the initial fee for Anago Subfranchise Rights 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 fee of $98,000 for Anago Subfranchise Rights is generally non-refundable once the Subfranchise Rights Agreement is signed. Anago considers this fee fully earned in consideration for administrative costs, lost opportunities, and other costs incurred by Anago as a result of granting the subfranchise rights.
However, there are specific circumstances under which a refund of the initial fee deposit may be possible. If Anago does not offer the applicant the right to enter into a Subfranchise Rights Agreement, or if Anago offers the agreement but the applicant fails to enter into it within 30 days of signing a deposit agreement, Anago will refund the deposit amount, less any deductions specified in the Deposit Agreement.
Therefore, while the initial fee itself is non-refundable under normal circumstances after signing the Subfranchise Rights Agreement, a potential subfranchisee may be eligible for a refund of their deposit under certain limited conditions if the agreement is not finalized. It is important for prospective Anago subfranchisees to carefully review the Deposit Agreement to understand the specific terms and conditions related to potential refunds.