What is the interest rate for the balance payable in monthly installments for the C-Fee for an Anago franchise?
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 a
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 the balance payable in monthly installments for 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. The C-Fee is payable with 20% upon assumption of the account, and the balance is payable in 11 equal monthly installments including interest.
For accounts with Gross Monthly Billing from $2,001 up to and including $3,000, the interest rate remains at 14% per year. Similar to the previous tier, 20% of the C-Fee is due upon assumption of the account. However, the remaining balance can be paid over either 11 or 17 equal monthly installments, including interest.
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 stated in the Account Assignment & Assumption Agreement. It's important to note that if a client contract is not renewed after 12 months and the financing was for a longer period (e.g., 17 or 18 months), the remaining balance becomes immediately due.