Under what conditions can Anago initiate a monthly technology licensing fee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) Technology Fee.
Franchisor reserves the right, upon written notice to Subfranchisor, to initiate a monthly technology licensing fee ("Technology Fee") equal to up to 1.5% of
Subfranchisor's monthly Gross Revenues during the preceding month. Subfranchisor agrees to pay the Technology Fee, once initiated, for the remainder of the Term. The Technology Fee is consideration for computer system hardware and/or the development, license, and/or use of proprietary or third-party software, whether for Franchisor's or Subfranchisor's use in connection with services provided by Franchisor to Subfranchisor.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago reserves the right to initiate a monthly technology licensing fee. This fee can be initiated upon written notice to the subfranchisor.
The technology fee will be equal to up to 1.5% of the subfranchisor's monthly gross revenues during the preceding month. Once initiated, the subfranchisor agrees to pay this fee for the remainder of the term.
The technology fee serves as consideration for computer system hardware and/or the development, license, and/or use of proprietary or third-party software. This software can be for Anago's or the subfranchisor's use in connection with services provided by Anago to the subfranchisor. This means that Anago can charge this fee to cover costs associated with technology used to support the subfranchisor's operations.