Anago Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$219,000 - $339,000
Franchise Fee
$83,300
Min Cash Required
$20,000
Total US Locations
46
Business Summary
Anago Franchising, Inc. offers master franchises that grant individuals the right to act as subfranchisors in a designated territory. Anago master franchisees are authorized and obligated to sell unit franchises for janitorial and other facilities-related services to commercial establishments. They also secure commercial service contracts and assign the performance of those services to their unit franchisees.
Corporate History
Anago's history began with Anago International, Inc. (AII), formed in 1989, which started offering franchises in 1991 for janitorial and facilities-related services. In February 1995, Anago Franchising, Inc. (AFI) was established as a Florida corporation to take over and continue offering and selling Anago subfranchises, while AII ceased operations in December 2023. Anago Cleaning Systems, Inc. (ACS) is the parent company and owns the Anago brand trademarks, licensing them to AFI. In September 2019, Anago Direct Marketing, Inc. (ADM) was created as a subsidiary to manage the call center and telemarketing services for the Anago system. AFI also has affiliates like Anago of South Florida, Anago of Las Vegas, and APLR, Inc., which operates as a subfranchisor in certain regions.
Financial Overview
Investment Range
$219,000 - $339,000
Franchise Fee (Low)
$83,300
Franchise Fee (High)
$98,000
Minimum Cash Required
$20,000
Royalty %
5%
Equipment Costs (Low)
$15,000
Equipment Costs (High)
$25,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Anago Cleaning Systems, Inc. demonstrates strong financial health. Its cash and equivalents have grown significantly from $1.1 million in 2021 to over $2 million in 2023, while total current assets increased from approximately $2.7 million to over $4.2 million in the same period. This has resulted in robust working capital, which stood at over $3.5 million in 2023. Anago Cleaning Systems has also consistently increased its total revenue and operating income, with comprehensive income showing a strong positive trend. The independent auditor's report explicitly states that they found no conditions or events that raise substantial doubt about Anago Cleaning Systems' ability to continue as a going concern. While a significant portion of Anago Cleaning Systems' cash and investment funds exceed FDIC insurance limits, meaning these amounts are uninsured, management has reported no impairment to investments and no need for an allowance for doubtful accounts for its receivables, indicating confidence in its asset quality. Additionally, Anago Cleaning Systems, Inc., the parent company, guarantees the performance of all obligations under each Subfranchise Rights Agreement, providing an extra layer of security.
Financing Details
Anago Franchising, Inc. does not offer any direct or indirect financing to its franchisees. This means that if a prospective Anago Master Franchisee needs funding to start their business, they will have to secure it entirely on their own, as Anago Franchising, Inc. will not provide loans, guarantees for notes, leases, or other obligations.
Performance Metrics
Total US Locations
46
Franchised Units
45
Corporate Units
1
Avg Square Footage
1,250
Franchising Since
1995
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Anago Franchising, Inc. reports no pending litigation. Its legal history includes one prior action, 'Cury, et. Al. v. Anago Cleaning Systems, Inc., et. Al.,' a shareholder derivative lawsuit filed in 2007. This case involved former shareholders suing Anago Cleaning Systems, Inc. (the franchisor's parent company) and its officers for alleged mismanagement, seeking damages, stock redemption, and an accounting. Anago Cleaning Systems, Inc. countersued for defamation and breach of an employment agreement. All claims were settled and voluntarily dismissed in May 2015.
Bankruptcy History
Anago Franchising, Inc. has no bankruptcy history to report for itself or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Anago Subfranchise Rights Agreement, Anago subfranchisors must provide written notice of their intent to renew by submitting an application between 9 and 12 months before the current term expires. They must not be in default of their Subfranchise Rights Agreement or any other agreements with Anago Franchising, Inc. or its affiliates, and all outstanding debt must be settled. Anago subfranchisors are required to sign Anago Franchising, Inc.'s then-current Successor Anago Subfranchise Rights Agreement, which may have different terms, and a general release of all claims against Anago Franchising, Inc. and its affiliates. They must also comply with Anago's then-current qualification and training requirements. Finally, the minimum monthly royalty paid in the successor agreement will be no less than the average monthly royalty paid during the last year of the existing agreement.
Training & Support Program
Franchisor Assistance
Anago Franchising, Inc. provides comprehensive support to its subfranchisors. Before opening, Anago provides an initial training program for up to two weeks, loans the Anago Manuals, and offers assistance with preparing advertising brochures, compiling lists of local suppliers, identifying prospective clients, and setting up local newspaper advertising for Unit Franchisees. Anago also provides specifications for computer systems and custom NBDS formats, and offers informal advice. Subfranchisors are supplied with a current generic FDD (Subfranchisor - Single Unit) to modify for their own Unit Franchisees. Ongoing support includes a telephone hotline for informational assistance for Anago subfranchisors and their Unit Franchisees. Anago Franchising, Inc. may develop and administer national and/or regional advertising funds and campaigns to promote the System. Subfranchisors receive continuing advisory assistance on Unit Franchise operation and promotion, including new developments, equipment and supply improvements, and new techniques in advertising, service, and management. Anago Franchising, Inc. refers all leads for potential Unit Franchises within the subfranchisor's territory. They also manage a billing and collection system for clients, handling invoicing and depositing client payments into an Anago Escrow Account, making weekly distributions to the subfranchisor (after deducting fees), and requiring subfranchisors to pay Unit Franchisees directly. Anago subfranchisors are also required to attend an annual seminar.
Initial Training Hours
136
Training Location
Anago's offices or other mutually agreeable locations
Ongoing Support
Anago Franchising, Inc. provides ongoing support to its subfranchisors, including a telephone hotline for informational assistance for Anago subfranchisors and their Unit Franchisees. The franchise may develop and administer national and/or regional advertising funds and campaigns to promote the System. Anago also offers continuing advisory assistance on Unit Franchise operation and promotion, sharing new developments, improvements in equipment and supplies, and new techniques in advertising, service, and management. The franchisor refers all leads received for potential Unit Franchises within the subfranchisor's territory. Anago Franchising, Inc. also operates a comprehensive billing and collection system where it invoices clients, deposits client payments into an Anago Escrow Account, makes weekly distributions to the subfranchisor (after deducting fees), and oversees payments to Unit Franchisees. Anago subfranchisors may also receive additional training, though it is at their own expense and at Anago's sole discretion. Additionally, Anago subfranchisors are required to attend Anago's Annual Seminar, typically lasting 2-3 days, at their own expense.
Franchise Requirements
Ideal Candidate Profile
Anago Franchising is seeking individuals or entities to act as master franchisees and subfranchisors. The ideal candidate will demonstrate strong management skills, business acumen, and the ability to supervise and control the day-to-day operations of their subfranchise business. This includes actively engaging in the sale of Anago Unit Franchises and securing commercial janitorial contracts within their designated territory, as well as managing sales personnel. A critical aspect of the role is the capability to navigate and ensure compliance with federal and state franchise regulations for their own unit franchise offerings, which requires developing and maintaining their own Franchise Disclosure Document, providing annual audited financials, and retaining qualified legal and accounting professionals. The controlling owner or managing member of the subfranchise entity must personally guarantee the business obligations and commit to full-time participation in the operation. While not explicitly required, owning an existing janitorial business or having over one year of experience in the janitorial franchise business may lead to a reduced initial training period. The total estimated initial investment for an Anago Master Franchise ranges from $219,000 to $339,000.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
full-time
Territory Type
non-exclusive
Territory Size Requirements
Anago Master Franchise territories are defined by the boundaries of a standard, statistical metropolitan area, including a minimum population of 500,000 people, based on the Subfranchise Program purchased. Minimum client bid schedules are also tied to population: for areas with 1,000,000 or fewer people, Anago requires at least 15 client bids per month during the first year, increasing to 20 in the second year and 25 thereafter. For areas with 1,000,001 to 3,000,000 people, the requirement is 20 bids in year one, 30 in year two, and 40 thereafter. In areas with at least 3,000,001 people, Anago requires 30 bids in year one, 45 in year two, and 60 thereafter. These requirements are subject to change.
Staffing Notes
For an Anago Master Franchise, the business must be operated as a limited liability company or corporation. An individual who is a controlling shareholder or managing member must act as the Designated Manager, completing the initial training program and overseeing the Subfranchisor's activities, a role that cannot be delegated without prior approval. All managers, field representatives, and any personnel with access to Anago's Confidential Information must sign confidentiality agreements. The Subfranchisor is entirely responsible for hiring, firing, scheduling, staffing, and managing its employees, including setting their compensation and ensuring compliance with brand standards and all applicable employment laws. It is implied that roles such as salespersons and brand managers are part of the team, as they are expected to furnish their own transportation.