Under what conditions can Anago finance the C-Fee for franchisees?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
(iv) If the C-Fee is paid in full at the time of assumption, the C-Fee will be reduced by 15%.
(v) If the C-Fee is paid in full within 90 days of assumption, no interest charges will accrue.
(vi) The C-Fee of One-Time Services, Initial Cleans or Extra Work on additional Accounts We secure will be equal to 20% of the gross fee charged to the Client and will not be financed.
(vii) If You voluntarily relinquish an additional Account that You have assumed, after 10 business days' written notice to Us of Your intent to relinquish, any C-Fee payment still due will be canceled if We are able to have another Unit Franchisee assume the Account and the Client does not cancel within 60 days after the transfer date; otherwise, the C-Fee remains due.
(viii) If You lose an additional Account for the reasons stated in either Subsections 2.1(c)(ii)-(iii) or if You cease service to the Account (for more than 2 days without at least 10 business days' written notice and Our consent) or if You abandon Your Anago Unit Franchise and the C-Fee was financed, the entire unpaid amount becomes immediately 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, the document outlines several conditions related to the C-Fee, but it does not explicitly state the conditions under which Anago will finance the C-Fee for franchisees. However, the document does provide information on payment options, discounts, and potential credits related to the C-Fee.
Specifically, if an Anago franchisee pays the C-Fee in full at the time of assumption, the C-Fee will be reduced by 15%. If the C-Fee is paid in full within 90 days of assumption, no interest charges will accrue. The C-Fee for One-Time Services, Initial Cleans, or Extra Work on additional Accounts secured by Anago will be equal to 20% of the gross fee charged to the Client and will not be financed. If a franchisee voluntarily relinquishes an additional Account with written notice, any C-Fee payment still due will be canceled if Anago can have another Unit Franchisee assume the Account and the Client does not cancel within 60 days after the transfer date.
If a franchisee loses an additional Account for specific reasons or ceases service to the Account without proper notice or abandons their Anago Unit Franchise and the C-Fee was financed, the entire unpaid amount becomes immediately due. C-Fee payments are discontinued if the Client cancels the service contract through no fault of the franchisee. Credits for C-Fee payments will be made if the Client cancels the services contract within 180 days from the date of commencement, limited to 15% of paid C-Fees calculated for the contract, at Anago's sole discretion, provided the franchisee can verify that the contract was canceled through no fault of theirs.
While the FDD excerpts provide details on C-Fee payments, discounts, and credits, they do not specify the conditions under which Anago will finance the C-Fee. A prospective franchisee should inquire directly with Anago about the availability of financing options for the C-Fee and the specific terms and conditions associated with such financing.