How is the Transfer Fee for Advanced Mobile Iv And Amiv determined if it changes?
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, the Transfer Fee is determined by the "then-current fee" outlined in the most recent disclosure document at the time of the transfer. Currently, the transfer fee is $5,000, plus applicable taxes. This fee must be paid before or upon the transfer of the franchise.
For a prospective Advanced Mobile Iv And Amiv franchisee, this means that if they decide to sell their franchise in the future, the transfer fee they or the buyer will have to pay could be different from the initial $5,000 listed in the current FDD. The fee is subject to change based on what Advanced Mobile Iv And Amiv specifies in the FDD that is current at the time of the transfer.
It is important for prospective franchisees to understand that the transfer fee is not fixed and can be adjusted by Advanced Mobile Iv And Amiv. Therefore, when considering a transfer, it is crucial to review the most recent FDD to determine the applicable transfer fee at that time. This is a fairly standard practice in franchising, as fees are often updated to reflect current market conditions and the franchisor's costs.