To whom do I make the initial fee/subfranchise fee payment 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 |
| Legal and | $5,000 to | As arranged | As incurred | Attorneys and |
| Accounting3 | $15,000 | Accountants | ||
| Type of Expense1 | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
| Marketing and | $50,000 to | As incurred | As incurred | Suppliers |
| Advertising4 | $100,000 | |||
| Travel Expenses | $2,000 to | As arranged | As incurred | Third Parties |
| for training5 | $3,000 | |||
| Lease/Utility | $10,000 to | Lump Sum | As incurred | Third Parties |
| Deposits and Rent6 | $20,000 | |||
| Equipment, Fixtures, and Computer Systems7 | $15,000 to $25,000 | As arranged | As arranged | Us and Suppliers |
| Office Supplies8 | $1,000 to $2,000 | Lump Sum or installments/Lease | As incurred | Third Parties |
| Vehicle Operating | $3,000 to | As incurred | As incurred | Third Parties |
| Expenses9 | $6,000 | |||
| Insurance10 | $5,000 to $10,000 | Lump Sum | As arranged | Us |
| Miscellaneous | $10,000 to | As incurred | Before beginning | Third Parties |
| Start-up Costs11 | $20,000 | business | ||
| Additional Funds12 | $20,000 to $40,000 | As incurred | As incurred | Third Parties |
| TOTAL13 | $219,000 to $339,000 |
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 or subfranchise fee is paid directly to Anago. This fee, which amounts to $98,000, is due in a lump sum upon signing the Subfranchise Rights Agreement.
In addition to the initial fee, the FDD outlines other expenses payable to different entities. For instance, legal and accounting fees, estimated between $5,000 and $15,000, are paid to attorneys and accountants as services are rendered. Marketing and advertising costs, ranging from $50,000 to $100,000, are paid to suppliers as incurred. Equipment, fixtures, and computer systems, costing between $15,000 and $25,000, are paid to Anago and suppliers. Insurance costs, estimated between $5,000 and $10,000, are paid to Anago.
Prospective franchisees should note that these payments are part of the initial investment necessary to start an Anago subfranchise. Understanding where each payment is directed ensures proper allocation of funds and adherence to the franchise agreement. It is also important to note that unless otherwise indicated, these payments are generally non-refundable.