What is the transfer fee required by Anago when transferring a subfranchise?
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 Agreement; and
(f) Subfranchisor and transferee pay Franchisor a transfer fee of $10,000, in lieu of paying an initial Subfranchise Fee to Franchisor, to cover Franchisor's administrative and other expenses in connection with the transfer.
Section 7.4 - Death or Disability
On the death or permanent disability of the Subfranchisor (if an individual) or of a principal owner of a Subfranchisor, a personal representative of the person must provide a replacement manager satisfactory to the Franchisor and transfer his or her int
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, when transferring a subfranchise, both the subfranchisor and the transferee must pay Anago a transfer fee of $10,000. This fee is in place of the initial subfranchise fee and is intended to cover Anago's administrative and other expenses related to the transfer process.
In the event of the death or permanent disability of the subfranchisor (if an individual) or a principal owner of the subfranchisor, a personal representative is required to provide a replacement manager who is satisfactory to Anago. Additionally, the interest must be transferred to a third party approved by Anago within six months from the date of death or disability. Such a transfer is subject to the standard transfer requirements.
It is important to note that Anago's approval of a transfer does not waive any claims they may have against the subfranchisor, nor does it waive their right to demand exact compliance with the agreement from the transferee. The subfranchisor remains liable for any conduct before the transfer, including any breaches of the agreement, even if the transfer is approved by Anago.