What obligation does a franchisee have to Advanced Mobile Iv And Amiv regarding relocation costs?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
food and lodging costs to attend. This is |
| Name of Fee | Amount | Date Due | Remarks |
|---|---|---|---|
| not a fee collected by | |||
| us; these amounts are | |||
| paid to third parties | |||
| vendors. Travel and | |||
| lodging costs, including | |||
| plane fares, may vary | |||
| greatly based on your | |||
| franchise location and | |||
| the distance to the | |||
| location of the annual | |||
| convention. | |||
| Step-In Rights Fee | 15% of Gross Sales | Upon demand | Payable only if we |
| plus reasonable | exercise our Step-In | ||
| administrative, | Rights (see Section 6.7 | ||
| personnel, and travel | of the Franchise | ||
| costs | Agreement). | ||
| Transfer Fee | Then-current fee, currently $5,.000 plus applicable taxes. | Before or upon transfer | This fee will be determined based on the Transfer Fee outlined in our most recent disclosure document at the time of transfer. |
| Renewal | Then-current fee, currently $2,500 for Tiers 1 & 2 and $5,000 for Tiers 3 & 4, plus applicable taxes. | Upon renewal, every 5 years | This fee will be determined based on the Renewal Fee outlined in our most recent disclosure document at the time of renewal. |
| Late Charge | 1.5% per month, plus a $50 service fee. | Each month that amounts owed remain unpaid | You will not be compelled to pay late charges at a rate greater than the maximum allowed by applicable law. |
| Unsatisfied Payment Fee | $50 for each unsatisfied attempt | As incurred | If we attempt a draw or other process that is returned unsatisfied for any reason, we may charge you a $50 fee for each unsatisfied attempt. |
| Relocation | You will reimburse us | Prior to relocation | |
| for our reasonable out |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2023 FDD)
According to Advanced Mobile Iv And Amiv's 2023 Franchise Disclosure Document, if a franchisee relocates their business, they are required to reimburse Advanced Mobile Iv And Amiv for the franchisor's reasonable out-of-pocket costs associated with the relocation.
This means that if Advanced Mobile Iv And Amiv incurs expenses due to the franchisee's relocation, such as travel costs for site visits or administrative costs for updating records, the franchisee is responsible for covering those costs. The FDD specifies that this reimbursement is due prior to the relocation.
As the FDD only mentions "reasonable out-of-pocket costs" without specifying a particular amount, it is important for a prospective franchisee to discuss with Advanced Mobile Iv And Amiv what specific expenses could be included and how these costs are determined to ensure transparency and avoid potential disputes in the future. Understanding the scope of these potential relocation costs is crucial for financial planning.