factual

Under what circumstances will an Anago franchisee be assessed an 'Account Transfer Fee'?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

nts that must be transferred from You to another Franchisee will incur the full month's C-Fee.

  • (g) Operations Fee. If We elect to procure service to an Account You are currently servicing in order to comply with the Account's requirements or You are unable or unwilling to provide the services, You will be assessed an Operations Fee of $50 plus any labor and materials cost.
  • (h) Account Transfer Fees. If a Client gives notice of pending cancellation or requests a transfer due to poor performance on Your part, or poor Client relations, We will assign the Account to another Unit Franchisee or if We have received 3 or more complaints from a Client or

Our Brand Standards Department within any 30-day period concerning Your performance and We elect to transfer the Account, an Account Transfer Fee of $100 will be assessed. If the transferred Account requires additional work to bring the cleanliness up to acceptable standards, You will be given an opportunity to provide labor and materials, at Your expense and You will be assessed an Additional Account Transfer Fee of $50 or a total of $150. If You cannot or elect not to provide labor and materials, We will procure the necessary labor and materials to the Client and deduct the expense from monies due You. If We receive 3 or more complaints during a 30-day period, We

Source: Item 23 — RECEIPTS (FDD pages 62–298)

What This Means (2025 FDD)

According to Anago's 2025 Franchise Disclosure Document, an Account Transfer Fee may be assessed to a franchisee under specific circumstances related to client dissatisfaction or performance issues. If a client requests a transfer or gives notice of cancellation due to the franchisee's poor performance or client relations, Anago will assign the account to another franchisee. In this case, the franchisee will be assessed an Account Transfer Fee of $100.

Additionally, if Anago receives three or more complaints from a client or its Brand Standards Department within a 30-day period regarding the franchisee's performance, Anago may elect to transfer the account and assess the $100 Account Transfer Fee. If the transferred account requires additional work to meet acceptable cleanliness standards, the franchisee has the option to provide the necessary labor and materials at their own expense, and they will be assessed an Additional Account Transfer Fee of $50, totaling $150. If the franchisee cannot or chooses not to provide the labor and materials, Anago will procure them and deduct the expense from the money owed to the franchisee.

Furthermore, if inspections by Anago's Brand Standards Department reveal a continued lack of proper service or poor quality of service, Anago has the right to transfer the account without notice and assess a $100 Account Transfer Fee. All other transfers will be assessed a $50 Account Transfer Fee. This policy highlights the importance of maintaining service quality and client relations to avoid incurring these fees, which can impact a franchisee's earnings.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.