What are the reasons for which Anago may charge non-compliance fees?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee 1 | Amount | Due Date 2 | Remarks |
|---|---|---|---|
| Supplier Testing Fee | Reimbursement of our reasonable costs of the inspection and the actual cost of the testing. | Immediately upon receipt of invoice. | If you propose to purchase or lease any equipment, supplies, advertising materials, or other products or services from an unapproved supplier, you must first submit to us a written request for approval, or request the supplier to do so itself. We have the right to require, as a condition of our approval, that our representatives be permitted to inspect the supplier's facilities, and that samples from the supplier be |
| Audit | Varies | Immediately upon receipt of invoice. | If an audit by us discloses an understatement of Gross Revenues in excess of 2% for any period or periods, you will be required to reimburse us for all costs of the audit in addition to paying past due Royalties, Advertising Fees (when imposed) plus any late |
| Insurance | Actual cost to maintain your insurance policy (Insurance Premium) | Monthly on the 20 th day of each month. | You are required to be covered under the Anago National Insurance program during the entire Term. This will be paid to us or our designee. You will pay the actual cost to maintain your insurance policy (Insurance Premium). Premiums for any such insurance plans are determined by the insurance carrier, and may vary by state, may change from year to year, and are based on your experience modifier and other factors as determined by the insurance carrier. The plans may be subject to change, modification, and/or cancellation. You are responsible for payment of all deductibles, should a claim arise. |
| Non-compliance fees | $100 per day, per report, late fee for failing to submit reports on time. | Immediately upon notice of violation | If you fail to submit required monthly reports on time. Or fail to deposit client re |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, non-compliance fees of $100 per day, per report, may be charged for failing to submit required monthly reports on time or for failing to properly deposit client receipts into the required bank accounts. These fees are due immediately upon notice of the violation.
It is important for prospective Anago franchisees to understand the implications of these non-compliance fees. Failing to submit reports on time or mishandling client receipts can quickly lead to substantial penalties, impacting profitability. Franchisees should establish robust systems for tracking and submitting reports and managing client deposits to avoid these fees.
Franchisors typically impose fees for non-compliance to ensure brand standards and operational consistency across all franchise locations. Anago's approach is in line with this practice, aiming to maintain financial accountability and timely reporting among its franchisees. By adhering to the required reporting and deposit procedures, franchisees can avoid these fees and maintain a positive financial standing with Anago.