What is the interest charge on the Anago C-Fee if financed?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
thly Billing of additional Accounts, but we reserve the right, on 30 days' notice to You, to increase it to 5.0 times the Gross Monthly Billing of additional Accounts. The C-Fee and is payable in full at the time of the assumption of the Account or may be financed by Us at Our sole discretion under the Terms listed below in this Section 3.1(f) (Subsections (i) through (xv)).
- (i) For any additional Account We offer to You and You accept having Gross Monthly Billing of up to and including $2,000, the C-Fee is payable: (a) 20% upon assumption of the Account; and (b) the balance payable in 11 equal monthly installments including interest at 14% per year.
- (ii) For any additional Account We offer to You and You accept having Gross Monthly Billing from $2,001 up to and including $3,000, the C-Fee is payable: (a) 20% upon assumption of the Account; and (b) the balance payable in 11 or 17 equal monthly installments including interest at 14% per year. Should, for any reason, the Client contract not be renewed after 12 months, and the financing was for 17 months, the remaining balance is immediately due.
- (iii) For any additional Account We offer to You and You accept having Gross Monthly Billing of $3,001 and above the C-Fee is repayable as negotiated by the parties as stated in the Account Assignment & Assumpt
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the interest rate for financing the C-Fee depends on the Gross Monthly Billing of the additional account. For accounts with Gross Monthly Billing up to and including $2,000, the interest rate is 14% per year, with the balance payable in 11 equal monthly installments after an initial 20% payment upon assumption of the account. For accounts with Gross Monthly Billing from $2,001 up to and including $3,000, the interest rate remains at 14% per year, but the balance can be paid in either 11 or 17 equal monthly installments, also after an initial 20% payment.
For accounts with Gross Monthly Billing of $3,001 and above, the C-Fee repayment terms, including the interest rate, are negotiated between Anago and the franchisee, as detailed in the Account Assignment & Assumption Agreement. This implies that the interest rate could be different from 14% for these larger accounts, depending on the negotiation.
It's important to note that if a client contract is not renewed after 12 months and the financing was for a longer period (17 or 18 months, depending on the agreement), the remaining balance becomes immediately due. Additionally, franchisees can avoid interest charges altogether by paying the C-Fee in full within 90 days of assuming the account. Paying the C-fee in full at the time of assumption also results in a 15% reduction of the C-Fee.