Under what conditions can an Anago franchisee prepay their note without penalty?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
This Note may be prepaid, in whole or in part, at any time without penalty provided that any partial payment will be applied against the principal amount outstanding in inverse order of maturity and will not postpone the due date of any later payment unless We otherwise agree in
writing in Our sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, an Anago franchisee has the option to prepay their note, either in full or partially, without incurring any penalties. However, any partial payment made will be applied to the outstanding principal amount in the reverse order of its maturity. This means that the payment will be credited towards the later installments first.
It's important to note that while partial payments are allowed, they do not automatically postpone the due date of any subsequent payments. The franchisee must continue to make timely payments as originally scheduled, unless Anago explicitly agrees in writing to modify the payment schedule. This provides Anago with the discretion to adjust the payment terms if they deem it appropriate.
This prepayment flexibility can be a significant benefit for Anago franchisees who experience improved cash flow or wish to reduce their debt obligations sooner than initially planned. However, franchisees should carefully consider the implications of prepaying, especially regarding the application of partial payments and the need to obtain written confirmation from Anago for any changes to the payment schedule.