To whom is the initial fee/subfranchise fee paid when signing the Subfranchise Rights Agreement 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 paid to "Us" upon signing the Subfranchise Rights Agreement. The initial fee/subfranchise fee is $98,000 and is to be paid in a lump sum.
This means that a prospective Anago subfranchisee must pay $98,000 directly to Anago when they sign the agreement to obtain subfranchise rights. This fee is a significant upfront cost that franchisees need to have readily available. It's important to note that this payment is typically non-refundable, as indicated elsewhere in the FDD, so a potential franchisee should be certain before signing the agreement.
Understanding where your money goes during the initial investment phase is crucial. In Anago's case, the initial fee represents a substantial portion of the total estimated initial investment, which ranges from $219,000 to $339,000. Knowing that this fee is paid directly to Anago provides clarity on how the funds are allocated and who the recipient is.