What is the total estimated initial investment for an Anago franchise, including all fees, expenses, and required purchases, and what are the financing options available to franchisees (Item 10)?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Initial Fees / Subfranchise Fee Deposit
In order to apply to become our master franchisee or subfranchisor, you must submit to us a completed application and pay the Initial Fee. The Initial Fee to obtain Anago Subfranchise Rights is $98,000 for the counties and/or cities that will comprise your territory. The Initial Fee is payable to us in full upon signing the Subfranchise Rights Agreement and isfully earned and non-refundable. However, if we do not offer you the right to enter into an Anago Subfranchise Rights Agreement or we offer you the right but you fail to enter into the agreement, in either case, within 30 days following your execution of a deposit agreement (the "Deposit Agreement") in the form attached as Exhibit C to this Disclosure Document, we will refund the amount you paid when you signed the Deposit Agreement, less any amounts as described in the Deposit Agreement. You are responsible to pay any sales, use or other taxes (other than our income tax) relating to the purchase of an Anago Subfranchise Rights Business.
Referral Fee
If you were referred to us by an existing subfranchisor and you purchase a territory, we will pay the referring subfranchisor $20,000, subject to certain terms and conditions. This does not apply if you purchase an existing territory from a referring subfranchisor.
VetFran
We are a member of the International Franchise Association ("IFA") and participate in the IFA's VetFran Program, in which we provide a 15% discount on the initial franchise fee and charge no royalty for the first 6 months of operation for veterans of the U.S. Armed Forces who meet the requirements of the VetFran Program. A qualified U.S. veteran must have at least 51% interest in the franchised business to qualify.
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the initial fee for obtaining Anago Subfranchise Rights is $98,000. This fee is payable in full upon signing the Subfranchise Rights Agreement and is fully earned and non-refundable. However, if Anago does not offer you the right to enter into an Anago Subfranchise Rights Agreement, or if they offer you the right but you fail to enter into the agreement within 30 days following your execution of a deposit agreement, Anago will refund the amount you paid when you signed the Deposit Agreement, less any amounts as described in the Deposit Agreement. The franchisee is responsible for paying any sales, use, or other taxes relating to the purchase of the Anago Subfranchise Rights Business.
Prospective Anago franchisees should be aware that the actual initial investment can vary based on factors such as local conditions, real property and equipment costs, personnel employed, and the size of the area. The FDD advises retaining an experienced accountant or financial advisor to develop a business plan and financial projections. Anago estimates cover items like marketing materials ($680 for total office and marketing materials), but these are estimates only. Franchisees may need to secure additional funds to cover personal living expenses and operating costs during and after the initial phase.
Anago does not offer direct or indirect financing to franchisees. However, Anago participates in the IFA's VetFran Program, offering a 15% discount on the initial franchise fee and waiving royalties for the first 6 months of operation for qualified U.S. veterans with at least 51% interest in the franchised business. This can significantly lower the initial investment for eligible veterans. Franchisees should inquire about specific requirements and eligibility criteria for the VetFran program.
In addition to the initial franchise fee, franchisees should budget for ongoing expenses such as insurance. The FDD mentions a 6-month premium for various insurance coverages, including general liability, umbrella liability, crime, casualty, and workers' compensation, with premiums varying by state and other factors. Franchisees are required to be covered under the Anago National Insurance program for the entire term. Furthermore, franchisees may incur corrective measures fees ranging from $0.00 to $500.00 if they receive unsatisfactory inspection reports and fail to remedy deficiencies promptly. These fees cover refresher classes and associated travel, meals, and lodging costs.