factual

For Anago programs I through X+, are the items described in Exhibits 3 and 4 included in the initial fee?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

VE COVENANTS AND CONFIDENTIALITY CLAUSES CONTAINED IN THIS AGREEMENT PRINT NAME: FRANCHISING, ANAGO INC. PRINT NAME: ADAM D. POVLITZ CEO & PRESIDENT

EXHIBIT I – FORM OF ANAGO UNIT FRANCHISE AGREEMENT

ANAGO UNIT FRANCHISE AGREEMENT

You must use Your own tools, equipment, and supplies to perform the services required
under the contract with the Account. We will provide to You office and marketing materials as
stated in Exhibit 2, cleaning supplies as stated in Exhibit 3 and minor equipment as stated in Exhibit
4. (The cleaning supplies and minor equipment described in Exhibits 3 and 4 are included in the
Initial Fee for programs I through X+. Purchasers of programs 0 and 500 must purchase the
cleaning supplies and minor equipment separately. Purchasers of program VII or higher will
receive two (2) complete sets of the cleaning supplies and minor equipment described in Exhibits
3 and 4).

Source: Item 23 — RECEIPTS (FDD pages 62–298)

What This Means (2025 FDD)

According to Anago's 2025 Franchise Disclosure Document, for programs I through X+, the cleaning supplies and minor equipment described in Exhibits 3 and 4 are included in the initial franchise fee. However, purchasers of programs 0 and 500 will not receive these supplies and equipment as part of their initial fee and must purchase them separately. Purchasers of program VII or higher will receive two complete sets of these items.

For prospective Anago franchisees, this means that the initial investment will vary depending on the program selected. Those opting for programs I through X+ can expect the cost of cleaning supplies and minor equipment to be bundled into the initial fee, while those choosing programs 0 and 500 must budget separately for these essential items. The inclusion of two sets of supplies and equipment for higher-tier programs (VII or higher) could be beneficial for franchisees anticipating a higher volume of business or seeking to have backup supplies readily available.

The FDD also states that franchisees can request an equipment waiver, which will reduce the initial fee, if they already possess supplies and equipment equivalent to those listed in Exhibits 3 and 4. However, these existing supplies are subject to Anago's approval and must meet the standards and specifications of the Anago system. This presents an opportunity for potential cost savings, but it's crucial to ensure that any existing supplies meet Anago's requirements to qualify for the waiver.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.