Anago Cleaning Master Franchise Costs, Fees & FDD

Year Business Began: 1989

Franchising Since: 1991

Headquarters: Pompano Beach, Florida

Estimated Number of Units: 1,875

Franchise Description: Anago Franchising, Inc. is the franchisor. The parent company is Anago Cleaning Systems, Inc. The franchise is the right to act as master franchisee in a designated area offering subfranchises for the operation of janitorial service cleaning businesses under the mark “Anago” that provide janitorial and other facilities-related services to commercial establishments. Master franchisees, or subfranchisors, are authorized and obligated to sell to qualified persons within their defined territory unit franchises for the operation of a janitorial services business (each a unit franchise) and to provide services to their unit franchisees.
Training Overview: Initial training is mandatory for all owners of a new master franchise and must be completed within 90 days after signing the Subfranchise Rights Agreement. The initial training program is for a period of two weeks but may be decreased if franchisees own an existing janitorial business, or if they have worked in the janitorial franchise business for a period of more than one year. Classroom training is used to denote formal discussions regarding the subject matter, which discussions may take place in a setting other than that of a “classroom.” It is distinguished from “on the job training,” which is putting into practice the subjects taught. The hours for both may change depending upon the franchisee’s expertise in any particular area. Franchisees will be required to attend, at their own expense, at least one time per year, Anago’s annual seminar. The annual seminar typically lasts two to three days.

Territory Granted: Under their Anago Subfranchise Rights Agreement, franchisees will be licensed and granted the right to operate their subfranchise in those counties as defined in the agreement during the term of the agreement so long as they are not in default of the agreement. The area granted will include a population delineated by the boundaries of a standard, statistical metropolitan area, sufficient to encompass the specified population (with a minimum population of 500,000), in accordance with the subfranchise program purchased. Franchisees will not receive an exclusive territory. However, with limited exception and provided franchisees are in compliance with their obligations under their Subfranchise Rights Agreement, the will not, during the term of the Subfranchise Rights Agreement, grant any other person the right to act as its subfranchisor in the area.

Obligations and Restrictions: Each subfranchise rights business must be conducted as a limited liability company or a corporation. An individual who is the controlling shareholder or managing member of that entity must act as the designated manager. This obligation may not be delegated without the franchisor’s prior approval. Franchisees may use their Anago subfranchise only for the operation of their Anago subfranchise business in accordance with the Anago Subfranchise Rights Agreement. Franchisees must keep the Anago subfranchise open and in normal operation for the minimum hours and days as the franchisor requires in the manuals or otherwise in writing except as may be limited by local governmental regulation or the landlord's rules and regulations. Franchisees may not operate any other business from their Anago master franchise office. The franchisor may periodically set the maximum and minimum price that franchisees may charge for services and products. Otherwise, franchisees may determine the prices they charge their customers.

Term of Agreement and Renewal: The length of the initial term of the Subfranchise Rights Agreement is 10 years beginning on the date the franchisor’s president countersigns the Subfranchise Rights Agreement. Franchisees have the right to renew for one additional term of 10 years if they meet the requirements for renewal.

Financial Assistance: Neither the franchisor nor any of its agents or affiliates offers direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation. The franchisor does, however, participate in the IFA’s VetFran Program, in which it provides a 15% discount on the initial franchise fee and charge no royalty for the first six months of operation for veterans of the U.S. Armed Forces who meet the requirements of the VetFran Program.

Estimated Initial Investment

Name of Fee	Low	High
Initial Subfranchise Fee	$98,000	$98,000
Legal and Accounting	$5,000	$15,000
Marketing and Advertising	$50,000	$100,000
Travel Expenses for Training	$2,000	$3,000
Lease / Utility Deposits and Rent	$10,000	$20,000
Equipment, Fixtures and Computer Systems	$15,000	$25,000
Office Supplies	$1,000	$2,000
Vehicle Operating Expenses	$3,000	$6,000
Insurance	$5,000	$15,000
Miscellaneous Start-Up Costs	$10,000	$20,000
Additional Funds – 6 months	$40,000	$40,000
ESTIMATED TOTAL	$219,000	$339,000

Other Fees

Type of Fee	Amount
Royalty Fee	5% of the gross revenues, subject to a minimum monthly amount.
Training Fees	$500 per day, if charged. There are no other fees charged for training.
Administrative Support Fee	2% of the total monthly billing collected by the subfranchisor.
Billing and Collection Fees	An invoice servicing fee of the greater of $1,000 or 1% of the total monthly billing and $25 for each unit franchise statement. (Waived for first 12 months.)
Deficiencies	Reimbursement of the franchisor’s costs in performing the master franchisee’s obligations.
Anago NBDS Support and Access Fees	Currently $200 per month.
Website Maintenance Fee	Currently $1,500 per month.
Technology Fee	Not currently assessed, but if initiated, up to 1.5% of subfranchisor’s monthly gross revenues.
Transfer Fee	$10,000 transfer fee in lieu of an initial fee. If the transferee is a spouse or child of the transferor, no transfer fee will be charged.
Replacement of Manuals	No charge for initial set of manuals. The replacement fee is $500 payable to the franchisor.
Indemnification	Varies.
Enforcement Costs	Varies.
Miscellaneous Merchandise	Varies, depending on which and how many items franchisees purchase from the franchisor.
Sale of Unit Franchise Fee	$400 per unit franchise that the franchisee sells.
Client Bid Schedule Deficiency Fee	$150 for each client bid below the required minimum that the franchisee failed to conduct.
Banking Fees	Credit card charges of 4.75% per transaction unless the franchisor’s cost to provide the franchisee this service is greater, in which case the franchisee will be required to pay the higher cost.
Advertising Enforcement Cost	Varies.
Advertising Fee	Up to 2.2% of the gross revenues during the preceding month to the fund.
Supplier Testing Fee	Reimbursement of the franchisor’s reasonable costs of the inspection and the actual cost of the testing.
Audit	Varies.
Insurance	Actual cost for the franchisor to maintain the insurance policy (insurance premium).
Non-Compliance Fees	$100 late fee for failing to submit reports on time.

The above information has been compiled from the FDD of Anago Cleaning Systems. Year of FDD: 2025.
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