Is the Anago transfer fee of $10,000 in addition to the initial subfranchise fee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
current standard form of Subfranchise Rights Agreement or enter into a
written assignment, under seal, and in a form satisfactory to Franchisor, assuming and agreeing to perform all of Subfranchisor's obligations under this
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the transfer fee for a subfranchise is $10,000. This fee is paid to Anago in place of the initial subfranchise fee. This implies that the $10,000 transfer fee covers Anago's administrative and other expenses related to the transfer, substituting for the standard initial subfranchise fee typically required.
For a prospective Anago subfranchisee, this means that when transferring a subfranchise, they will pay a $10,000 transfer fee instead of the usual initial subfranchise fee. This is an important distinction because the initial subfranchise fee is $98,000.
This substitution of fees could represent a significant cost savings for the transferee, as the transfer fee is substantially less than the initial subfranchise fee. However, it is crucial for potential transferees to understand all other obligations and requirements associated with the transfer, as detailed in Sections 7.2 and 7.3 of the Anago Franchise Agreement, to ensure they are fully aware of the financial and operational implications.