Where in the Anago Unit Franchise Agreement can I find details about the 'Account Transfer Fee'?

According to Anago's 2025 Franchise Disclosure Document, the definition of 'Account Transfer Fee' can be found within Article 17, Section 17.1, which is dedicated to defining terms used in the Anago Unit Franchise Agreement. Specifically, the 'Account Transfer Fee' is defined as the fee Anago will assess if they transfer an account from a franchisee to another Anago Unit Franchise under the circumstances described in Section 3.1(h) of the agreement. This section clarifies that the Account Transfer Fee is applicable when accounts are moved between franchisees.

This definition is important for prospective franchisees as it sets the stage for understanding when such a fee might be incurred. Account transfers could arise due to various reasons, such as a franchisee's poor performance or a client's request. Knowing that a fee is associated with such transfers allows franchisees to factor this potential cost into their financial planning and operational considerations. It also highlights the importance of maintaining good service and client relations to avoid triggering an account transfer.

Furthermore, the cross-reference to Section 3.1(h) indicates that the specific conditions and circumstances under which the Account Transfer Fee is applied are detailed elsewhere in the agreement. A prospective franchisee should carefully review Section 3.1(h) to fully understand the situations that could lead to this fee. This includes understanding the criteria Anago uses to determine when an account transfer is necessary and how the fee is calculated or assessed. Understanding these details is crucial for managing the franchise effectively and avoiding unexpected costs.

In summary, while Article 17, Section 17.1 defines the 'Account Transfer Fee,' Section 3.1(h) provides the context for when this fee is actually applied. Reviewing both sections is essential for any potential Anago franchisee to grasp the financial and operational implications of account transfers within the franchise system.