What is the interest rate charged by Anago on loaned uncollected funds?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
sed in this Agreement, the Exhibits attached to this Agreement and all other documents signed incidental to this Agreement and any Exhibits to those documents, the following terms have the following meanings:
- "Account" means a Client or Current Client.
- "**Account Tra
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if Anago loans a franchisee uncollected funds, the franchisee will incur a processing fee of $25, in addition to interest on the loaned amount. The interest rate charged on these uncollected funds is 18% per annum until the amount is fully paid.
This means that if a new Anago franchisee requires a loan of uncollected funds to manage their cash flow, they will not only have to pay back the principal amount, but also a processing fee and accrue interest at a rate of 18% per year. This is a relatively high interest rate compared to traditional bank loans, so franchisees should carefully consider whether they need to utilize this option.
Prospective franchisees should consider this cost when forecasting their potential earnings and cash flow. It would be prudent to have a business plan that minimizes reliance on these loans to avoid the high interest charges. Franchisees should also inquire whether there are alternative financing options available with more favorable terms.