Is the insurance program fee subject to change at Anago's discretion?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
7.2) advertising contribution of 2% of monthly Gross Revenues. We reserve the right to increase the advertising contributions provided the increased monthly advertising contribution will not exceed 2% of monthly Gross Revenues. Each advertising contribution is due on the same date and calculated for the same periods as the Royalty, and will be payable in the same manner.
- (e) Insurance Program Fees. If You elect to participate in Our insurance program, if available, rather than purchase on Your own the insurance required under ARTICLE 9, Y
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the insurance program fee is subject to change at Anago's discretion. If a franchisee elects to participate in Anago's insurance program instead of obtaining their own insurance as required under Article 9, they agree to pay Anago a fee. Currently, this fee is 8% of monthly Gross Revenues (5% for General Liability and 3% for Workers' Compensation), plus $2.00 per invoice per Client serviced. However, this fee is subject to change at Anago's discretion.
Additionally, if the franchisee does not obtain insurance through Anago, they are still liable for a charge of 2% of Gross Revenues for insurance administration and policy verification. Anago may also periodically adjust the amounts of coverage required under the insurance policies and require different or additional kinds of insurance at any time, including excess liability insurance. These changes can reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances, provided the changes are required throughout the Anago system, including any company units.
This means that the cost of insurance for an Anago franchisee can fluctuate. A prospective franchisee should factor in potential increases to these fees when projecting their operating expenses. It is also important to understand the circumstances under which Anago might change the required insurance coverage, as this could necessitate purchasing additional or different policies, further impacting costs.