Considering an Any Lab Test Now Franchise? Don’t Overlook These 21 Important Franchise Fees

Updated September 16, 2018.

If you are considering an Any Lab Test Now franchise, don’t get blindsided by these 21 important franchise fees (from the initial franchise fee, to the royalty fee, to 19 other fees found in Items 5 and 6 of Any Lab Test Now’s 2018 FDD).

1.  Initial Franchise Fee:  $15,000 to $40,000

• The Initial Franchise Fee is $40,000 for a Stand-Alone Unit and $15,000 for a Satellite Unit. The Initial Franchise Fee is due when you sign the Franchise Agreement. The Initial Franchise Fee is fully earned upon payment, and there are no refunds under any circumstances.

• During Any Lab Test Now’s fiscal year ended December 31, 2017, the range of actual Initial Franchise Fees paid was $30,000 to $40,000. The factors that influenced Any Lab Test Now’s decision to adjust the Initial Franchise Fee included the number of locations to be opened by the franchisee, if it’s an additional location for a franchisee, the length of time the franchisee had been associated with any affiliate of Any Lab Test Now, and the size of the Territory.

• Any Lab Test Now reserves the right to take these and other factors into consideration when offering adjustments to the Initial Franchise Fee in the future.

• You pay Any Lab Test Now no other fees or payments for services or goods before your business opens.

2.  Multi-Unit Development Fee:  Initial Franchise Fee for additional Units purchased under the Multi-Unit Development Program will be $30,000 for each Stand-Alone Unit and $11,250 for each Satellite Unit franchise

• If you desire to be a part of Any Lab Test Now’s Multi-Unit Development Program, you must sign a Franchise Agreement to open your first Any Lab Test Now location and pay the full Initial Franchise Fee of $40,000 for a Stand-Alone Unit or $15,000 for a Satellite Unit.

• You will also agree to open 1 additional location under the Multi-Unit Development Schedule. The Initial Franchise Fee for additional Units purchased under the Multi-Unit Development Program will be $30,000 for each Stand-Alone Unit and $11,250 for each Satellite Unit franchise and are due at the time that you sign the Multi-Unit Development Agreement.

• The MUD Fee is payable on execution of the MUD Agreement. The Initial Franchise Fees and any MUD Fees are payable on execution of the respective Agreements and are fully earned upon payment. There are no refunds under any circumstances.

3.  Royalty Fee:  8% of Gross Revenues per month, with a minimum of $500 per month

• Due Date:  Payable by ACH by the 15th of each month for the previous calendar month.

• Required of all franchisees. However, certain associate locations in Georgia were in existence prior to franchising and are therefore exempt from royalty fees.

• Fees will be collected electronically by ACH.

4.  Doctor Fee:  $2 per requisition

• Due Date:  Payable quarterly by ACH and due by the 15th of the following month for the previous quarter.

• Most tests performed by Any Lab Test Now must be referred by a physician. Any Lab Test Now may provide the physician, but you will be required to pay the per-test Doctor Fee.

• If the franchise is owned by a physician or recruits its own physician, it can refer the test and forgo the Doctor Fee.

5.  National Advertising Fund:  currently, none. If implemented, up to 3% of Gross Sales per location per month.

• Due Date:  Payable by ACH by the 5th of each month for the previous calendar month.

• Franchisor reserves the right to implement a National Advertising Fund at any time in the future.

6.  Advertising Cooperative/Multi-Area Marketing:  1% to 3% of Gross Revenue if implemented in your Area

• Due Date:  Payable monthly by ACH or check due by the 21st of the month for the previous calendar month.

• At this time, there is one advertising cooperative in effect in the Houston (TX) Greater Metro Area. Any Lab Test Now reserves the right implement cooperatives and/or multi-area marketing in other markets in the future.

• Franchisor will have no control on any fees imposed by such franchisee cooperatives.

7.  Initial Training:  included in Franchise Fee

• Due Date:  As scheduled.

• Training is included for up to 2 persons.

8.  Initial Training for Additional Persons:  $200 per person per day

• Due Date:  As incurred.

• Additional Initial Training Fees are only incurred if more than 2 persons are attending.

9.  Assistance at Your Location:  $500 per day (two day minimum), plus travel and living expenses

• Due Date:  As incurred.

• Additional charges only incurred for at-location assistance.

10.  Conference or Refresher Training Fees:  $99 to $250 per person attending

• Due Date:  As incurred.

• Payable before you attend the conference.

• You are also responsible for all travel and living expenses for you and your employees who attend.

11.  Transfer Fee (Franchise and MUD Agreement):  $0 to $5,000

• Due Date:  Prior to acceptance of transfer.

• Payable before you sell your franchise.

12.  Audit:  cost of audit, plus 1.5% interest per month on understatement

• Due Date:  30 days after billing.

• Any Lab Test Now pays all audit costs unless the audit shows an understatement of at least 2% of Gross Revenue for any month.

• In addition, the franchisee will be required to reimburse Any Lab Test Now for all fees and expenses incurred as a result.

13.  Fees for Lost Manual:  actual replacement cost

• Due Date:  Upon ordering.

• You must replace any Manual that is lost, stolen, or destroyed. The Manual remains Any Lab Test Now’s property.

14.  Late Payment/Interest:  $100 or 5% per occurrence, plus 1.5% interest per month

• Due Date:  30 days after due date.

• Franchisees must pay penalty and interest on late payments in the amount of 1.5% per month (or, if lower, the maximum interest rate allowed by applicable law).

15.  Insufficient Funds Fee:  currently, $100 or 5%, whichever is greater

• Due Date:  Upon demand.

• If any attempted payment you make to Any Lab Test Now is returned for insufficient funds, Anytime Lab Test Now may charge a reasonable fee.

16.  Costs of Collection:  as incurred

• Due Date:  Upon demand.

• You must pay any damages, expenses through appeal, collection costs, and reasonable attorneys’ fees that Any Lab Test Now incurs in connection with your failure to make any required payments.

17.  Legal Costs:  as incurred

• Due Date:  Upon demand.

• In a legal proceeding between you and Any Lab Test Now, the prevailing party is entitled to recover from the losing party reasonable attorneys’ fees, court costs, and expenses.

18.  Indemnification:  as incurred

• Due Date:  Upon demand.

• You must indemnify and defend Any Lab Test Now from liabilities arising from your operation of the business or use of its trademarks and system in violation of the Franchise Agreement.

• Liabilities include, without limitation, accountants, attorney, and expert witness fees, investigation costs, courts costs, and other litigation expenses.

19.  Franchise Renewal Fee:  $5,000

• Due Date:  30 days prior to renewal.

• Initial franchise term is 10 years. The renewal term is 10 years.

20.  Pay Per Click Required Spend:  $1,500 per month for Stand-Alone Units and $650 per month for Satellite Units

• Due Date:  As incurred.

• Paid to Any Lab Test Now’s authorized PPC vendor.

21.  Computer and Communications Equipment Upgrades and Maintenance:  no more than $1,000 per occurrence

• Due Date:  As incurred or as agreed.

• You must purchase upgrades and pay for maintenance for your computer and communications equipment, including upgrades for software, when Any Lab Test Now requires you to do so.