What is the total estimated initial investment for an Anago franchise, considering the initial fee in Item 5 and the other expenses listed in Item 7?
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 |
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the estimated total initial investment to begin operating a Master Franchise ranges from $219,000 to $339,000. This includes the initial subfranchise fee, as well as other expenses. The initial fee for Anago Subfranchise Rights is $98,000, which is paid in a lump sum upon signing the Subfranchise Rights Agreement.
Additional costs include legal and accounting fees, which range from $5,000 to $15,000, and marketing and advertising expenses, estimated between $50,000 and $100,000. Travel expenses for training are estimated to be between $2,000 and $3,000. Lease, utility deposits, and rent can range from $10,000 to $20,000. Equipment, fixtures, and computer systems are estimated to cost between $15,000 and $25,000. Office supplies are projected to be between $1,000 and $2,000. Vehicle operating expenses range from $3,000 to $6,000. Insurance costs are estimated between $5,000 and $10,000. Miscellaneous start-up costs range from $10,000 to $20,000, and additional funds needed range from $20,000 to $40,000.
Prospective Anago franchisees should note that these figures are estimates and the actual investment can vary based on factors such as local conditions, the size of the area, and the franchisee's management skills. The FDD advises consulting with an experienced accountant or financial advisor to develop a business plan and financial projections. The document also specifies that the subfranchisor is not required to operate a Unit Franchise, and these costs relate only to operating a Master Franchise.