Under what circumstances will Anago pay a referral fee to an existing subfranchisor?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchise 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 exis
Source: Item 5 — INITIAL FEES (FDD page 12)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, a referral fee of $20,000 will be paid to an existing subfranchisor if they refer a new subfranchisor who then purchases a territory from Anago. However, this referral fee is subject to certain terms and conditions that are not specified in the FDD. This referral fee is not applicable if the new subfranchisor purchases an existing territory directly from the referring subfranchisor.
This referral program could incentivize existing Anago subfranchisors to actively recruit new franchisees, helping the brand expand. For a prospective subfranchisor, it's important to understand the 'certain terms and conditions' attached to the referral fee to gauge the likelihood of receiving it.
It is common in the franchise industry for franchisors to offer referral bonuses to existing franchisees as a way to encourage growth and expansion of the franchise system. These referral fees can vary widely in amount and conditions, so it is important for prospective franchisees to carefully review the terms of any referral program before relying on it.