Under what condition are Anago Billing and Collection Fees waived for the first 12 months?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1 | Amount | Due Date2 | Remarks |
|---|---|---|---|
| Billing and Collection Fees | An invoice servicing fee of the greater of $1,000 or 1% of your Gross Revenues and $25 for each unit franchise statement (Waived for first 12 months. See Remarks.). | Monthly on the 20th day of each month | Under the Unit Franchise Agreement, your Unit Franchise will appoint you as its billing and collections agent. For 12 months after you begin operating and indefinitely after an event of default, you will delegate that responsibility to us. We provide this service at no charge during the initial 12-month period (except for the cost of postage). If we provide the service after an event of default or, at your request, beyond the initial 12-month period, this fee will be assessed by us. |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Billing and Collection Fees are waived for the first 12 months of operation. After this initial period, Anago may assess an invoice servicing fee of the greater of $1,000 or 1% of your Gross Revenues, along with $25 for each unit franchise statement.
This waiver is applicable under normal operating circumstances. However, after 12 months, or indefinitely after an event of default, the subfranchisee will delegate the billing and collection responsibilities to Anago, and the fees will apply. The FDD specifies that the subfranchisee appoints Anago as its billing and collections agent under the Unit Franchise Agreement.
This arrangement means that for the first year, Anago subfranchisees do not have to pay for Anago's billing and collection services, which can help reduce initial costs. However, franchisees should be aware of what constitutes an 'event of default' as this would trigger the fees to be applied immediately. It is important to understand the terms and conditions that define an event of default in the franchise agreement to avoid unexpected costs.