What is the minimum Royalty Fee for Anago franchisees from the 13th to the 24th month of operation?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
service is provided by You directly or by Your |
| Type of Fee1 | Amount | Due Date2 | Remarks |
|---|---|---|---|
| operation, no minimum b) from the 13th - 24th months of operation, the minimum Royalty Fee is $1,500 per month c) beginning the th month of 24 operation until the termination of this agreement, the monthly minimum Royalty Fee shall increase each 12 months by $1,500 over the prior minimum amount. Any Successor Agreement shall contain a provision for the minimum monthly royalty paid to be no less than the average monthly royalty paid during the last year of this agreement. | Unit Franchises, employees or other contractors, excepting only the amount of any sales taxes that are collected and paid to the taxing authority. Gross Revenues includes the proceeds of any business interruption insurance. Cash refund and credit given to Clients (except credit for missed cleaning days) and receivables uncollectable from Clients will be deducted in computing Gross Revenues to the extent that the cash, credit or receivables represent amounts previously included in Gross Revenues where Royalty Fees and other amounts were paid. Gross Revenues are deemed received by You at the time the goods, products, merchandise or services from which they derive are delivered or rendered or at the time the relevant sale takes place, whichever occurs first. Gross Revenues consisting of property or services (for example, "bartering" or "trade outs") are valued at the prices applicable, at the time the Gross Revenues are received, and to the prod |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the minimum Royalty Fee for franchisees during their 13th to 24th months of operation is $1,500 per month. This means that regardless of the franchisee's gross revenues during this period, they must pay Anago at least $1,500 each month as a royalty fee.
After the initial 24-month period, the minimum monthly Royalty Fee increases by $1,500 every 12 months. This escalating minimum royalty payment structure is designed to ensure that Anago's revenue grows along with the franchisee's business.
Prospective Anago franchisees should carefully consider this escalating minimum royalty fee, as it could impact their profitability, especially in the early stages of their business when revenues may be lower. It is important to factor this minimum fee into their financial projections and business plan to ensure they can meet this obligation.