When is the initial fee/subfranchise fee due for an Anago franchise?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expense1 | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Initial Fee / Subfranchise Fee2 | $98,000 | Lump Sum | Upon signing the Subfranchise Rights Agreement | Us |
Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 19–22)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the initial fee/subfranchise fee is due upon signing the Subfranchise Rights Agreement. This fee amounts to $98,000 and must be paid in a lump sum to Anago. This is a standard practice in franchising, where the initial fee is typically required upfront to grant the franchisee the rights to operate under the franchisor's brand and system.
Prospective Anago franchisees should be aware of this immediate financial obligation. It's essential to have the funds readily available when entering into the agreement. This upfront payment grants the subfranchisor the right to operate their Anago franchise.
Understanding the timing and amount of this initial fee is crucial for financial planning. Franchisees should also confirm whether this fee is refundable under any circumstances, although the FDD notes in Item 7 that payments are generally non-refundable. Consulting with a franchise attorney and financial advisor is recommended to fully understand the implications of this payment and its role in the overall investment.