What is the range for the initial fee/subfranchise fee 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 $98,000. This fee is paid in a lump sum when signing the Subfranchise Rights Agreement and is paid directly to Anago. This is a standard practice in franchising, as the initial fee compensates the franchisor for granting the franchise rights and providing initial training and support.
In addition to the initial franchise fee, Anago estimates other initial investments. These include legal and accounting fees ranging from $5,000 to $15,000, marketing and advertising expenses ranging from $50,000 to $100,000, and travel expenses for training ranging from $2,000 to $3,000. Lease and utility deposits and rent are estimated to be between $10,000 and $20,000, while equipment, fixtures, and computer systems range from $15,000 to $25,000. Office supplies are estimated to cost between $1,000 and $2,000, and vehicle operating expenses range from $3,000 to $6,000. Insurance costs range from $5,000 to $10,000, miscellaneous start-up costs range from $10,000 to $20,000, and additional funds range from $20,000 to $40,000.
The total estimated initial investment for an Anago franchise ranges from $219,000 to $339,000. These figures are estimates and can vary based on factors such as location, the franchisee's management skills, and local economic conditions. Anago recommends that prospective franchisees consult with an experienced accountant or financial advisor to develop a business plan and financial projections. Franchisees should also consider their personal and family cash flow to ensure they can cover living expenses during the start-up period.