Under what circumstances are Anago C-Fee payments discontinued?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
tely due upon loss of such Account or abandonment of Your Unit Franchise. If the C-Fee amount You owe after loss, transfer or abandonment of an Account cannot be precisely determined due to fluctuating monthly payments, then an average will be taken of the prior months for which You provided services to the additional Account before the time of loss, transfer or abandonment.
- (ix) C-Fee payments are discontinued if the Client cancels the service contract through no fault of yours. C-Fees are non-refundable. However, credits for C-Fee payments will be made if the Client cancels the services contract within 180 days from the date of commencement. Any credit toward additional contract C-Fees is limited to 15% of paid C-Fees calculated for the contract and is at Our sole discretion; provided that You can verify that the contract was canceled through no fault of yours.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, C-Fee payments are discontinued if the client cancels their service contract, provided that the cancellation is not due to any fault of the franchisee. This means that if Anago loses a client for reasons outside of the franchisee's control, the franchisee is no longer obligated to pay C-Fees on that account. However, C-Fees are non-refundable.
Even though C-Fees are non-refundable, Anago may issue credits for C-Fee payments if a client cancels their service contract within 180 days from the start date. Any credit towards additional contract C-Fees is limited to 15% of paid C-Fees calculated for the contract. The issuance of such credit is at Anago's sole discretion, and the franchisee must verify that the contract was canceled through no fault of their own. The difference between the amount the franchisee has paid in C-Fees and the amount of credit given will be deemed earned by Anago.
It is important to note that no C-Fee credits are given if the franchisee desires to stop servicing the client or if the contract is canceled as a direct result of the Anago Unit Franchise's fault. Additionally, all C-Fee credits must be requested in writing within 30 days after termination of an account. Franchisees should maintain excellent service and client relations to avoid cancellations due to their performance, as this would disqualify them from discontinuing C-Fee payments or receiving credits.